Millions of Americans are still benefiting from the 2024 Cost-of-Living Adjustment (COLA) increase, and this trend will continue throughout the year. The Social Security Administration (SSA) officially announced a 3.2% increase in Social Security and Supplemental Security Income (SSI) benefits starting January 2024. This bump has been helping seniors, people with disabilities, and other beneficiaries keep up with rising prices caused by inflation.
But what does this actually mean for those receiving payments? And will there be more changes in 2025?
Let’s break it down in simple terms.
What is COLA and Why Is It Important?
COLA stands for Cost-of-Living Adjustment. It’s the percentage by which Social Security payments are increased every year to keep up with inflation. When the cost of groceries, fuel, housing, and other basic needs goes up, so should the income of those who rely on Social Security.
Without COLA, the real value of these monthly checks would go down over time, leaving many elderly and disabled Americans struggling to meet basic needs.
The 3.2% COLA increase for 2024 may seem small, but it’s meant to help offset the higher costs people are facing daily.
Who Is Getting the COLA Increase?
The COLA increase applies to a wide range of people:
- Retired workers
- Disabled individuals
- Survivor beneficiaries
- Spouses and children of deceased workers
- People receiving Supplemental Security Income (SSI)
This means over 70 million Americans are receiving higher payments due to the 2024 COLA increase.
How Much Extra Are People Getting?
Here’s a rough idea of how payments changed in 2024 due to the 3.2% COLA:
- The average monthly payment for a retired worker rose from about $1,848 to $1,907.
- SSI recipients now receive a maximum of $943 per month, up from $914 in 2023.
- Couples receiving SSI can now get up to $1,415 per month, compared to $1,371 last year.
The increase in payment started from January 2024 and has continued since then. So, if you noticed your monthly amount going up this year, now you know why!
How Can You Check Your New Social Security Payment?
You can easily check your updated payment by:
- Logging into your My Social Security account online.
- Reviewing the COLA notice letter sent to you by the SSA.
- Calling the SSA customer service at 1-800-772-1213 (TTY: 1-800-325-0778).
Make sure your address and banking info are updated to avoid any delays in receiving your payments.
Will There Be Another Increase in 2025?
The big question many people are now asking: Will there be another COLA in 2025?
The answer depends on inflation trends. The Social Security Administration uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July to September to calculate the next COLA.
If inflation continues to rise, we can expect another increase in 2025—but it may not be as high as in previous years unless prices surge again.
Some experts believe the next COLA could be around 2.6% to 3%, but it’s too early to know for sure. The official announcement usually comes in October each year.
Why This Matters for Millions
Social Security is the main source of income for many retirees and disabled people in America. Around 40% of elderly beneficiaries rely on Social Security for 90% or more of their income. So even a small increase in monthly payments can make a big difference.
With rent, food, medicine, and utility costs still rising in many parts of the country, the 2024 COLA increase is a much-needed support.
Final Thoughts
If you or someone in your family is receiving Social Security or SSI payments, rest assured that the 3.2% increase will continue throughout 2024. Keep an eye on inflation trends later this year to see if another adjustment is on the way in 2025.
Make sure you stay updated by checking your Social Security account online and reading any notices sent by the SSA.
