Social Security COLA brings increase for 2024

The Social Security Administration has announced that Supplemental Security Income (SSI) payments will see a significant increase in December. This adjustment is part of the annual cost of living adjustment (COLA) based on inflation data. The SSA provides monthly benefits to over 70 million people through various programs, including retirement benefits, disability benefits, and spousal and survivor benefits. These programs help millions of Americans maintain financial stability. The SSI program is unique as it assists those experiencing severe financial hardship. To qualify for SSI, beneficiaries must meet strict requirements. They must have little to no earnings, capped at $1,971 per month in 2024. Their resources should not exceed $2,000 for individuals or $3,000 for couples, with adjustments if applying for a child. They must also be over 65 years old or have blindness or another disability that significantly impairs them. The COLA is calculated using inflation data from the third quarter of the year (July, August, and September), specifically through the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

cola adjustments bring 2024 ssi increase

This year’s COLA increase was set at 2.5%, which, though smaller than some predictions, still reflects slight economic relief for beneficiaries amidst high inflation. For 2024, the new benefit amounts for SSI recipients are as follows: Individuals receiving the maximum amount of SSI can now expect to receive $967. Couples receiving the maximum amount will get $1,450. Essential persons, those who aid and care for SSI recipients, will be entitled to a maximum of $484. The maximum amount an individual SSI recipient can get in 2024 is $943, and for a couple, it is up to $1,415. However, various factors can reduce this amount. For instance, every two dollars earned through work reduces the SSI payment by about one dollar. SSI payments are typically distributed on the first of every month. If the first falls on a weekend or a national holiday, the payments are made on the previous working day. For example, the first check of 2025 will be distributed on December 31, 2024, due to New Year’s Day falling on a holiday. Beneficiaries eager to know their adjusted benefits can simply add 2.5% to their previous payment to estimate the new amount.