David W. Magann, P.A. Highlights the 2024 Boost in Social Security Benefits

In 2024, There was good news for over 71 million Americans. Social Security benefits and Supplemental Security Income (SSI) payments increased by 3.2 percent, which translates to a benefit increase of more than $50 a month. 

As the cost of living rises, federal benefits go up, driven by the Department of Labor Consumer Price Index. As the cost of living increases, the consumer price index rises. The COLA adjustment helps offset rising costs. The COLA makes sure the buying power of Social Security and Supplemental Security Income is not eaten away by inflation. It is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers. Should there be no increase in wages, there can be no COLA.

The CPI-W is set by the Bureau of Labor Statistics and is the official measure used by the Social Security Administration (SSA) in calculating COLAs. Historically, the COLA was enacted by Congress in 1972 as part of the Social Security amendments. In 1975, COLAs launched. 

During December, COLA notices are mailed to SSI recipients, retirement beneficiaries, survivors, representative payees, and disability beneficiaries. However, recipients can find out their amount sooner by using their personal mySocial Security account by visiting HERE. 

Even though beneficiaries may check on the increase in their benefits online, the funds are unavailable before December. Additionally, the retirement earnings test exempt amount is changing as well. For further information, visit HERE.

Attorney Magann is a compassionate advocate who diligently pursues the interests of his clients and provides practical advice on other pertinent legal issues, including estate planning, disability benefits, and personal injury law.