ECONOMY
Social Security Benefits Set To Increase 3.2% In 2024
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Social Security and Supplemental Security Income (SSI) recipients will see a 3.2% increase in their benefits in 2024 after their annual cost-of-living adjustment (COLA), the Social Security Administration announced Thursday.
When the increase takes effect in January, the average Social Security recipient will see a more than $50 boost per month. According to the Social Security Act, the annual COLA is calculated based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers.
“Social Security and SSI benefits will increase in 2024, and this will help millions of people keep up with expenses,” said Kilolo Kijakazi, Acting Commissioner of Social Security.
The benefits bump is more moderate than this year’s 8.7% increase, as runaway inflation begins to cool.
Social Security is funded by payroll taxes paid by workers and employers. In 2024, the maximum earnings subject to Social Security payroll taxes will be $168,000, up from $160,000 in 2023.
The consumer price index rose 0.4% in September, compared to 0.6% in August, and is up 3.7% from a year ago, according to data released Thursday by the Bureau of Labor Statistics. Core inflation, which includes all items minus food and energy, rose 0.3% in September, up 4.1% for the year.
Food prices rose 3.7% in September, in line with overall inflation. Gasoline was the primary driver of price increases in August, but slowed down in September. The gasoline index increased 2.1% in September, following a 10.6% surge the month before.
The shelter index accounted for more than half of the overall increase in September, up 7.2% compared to a year ago. The index rose 0.6% for the month, compared to 0.3% in August.
According to the Social Security Administration, there are more than 66 million Social Security beneficiaries, and approximately 7.5 million SSI recipients, though some people receive both.
TMX contributed to this article.
