Social Security recently announced that the Cost Of Living Adjustment, or COLA, increase for 2024 will be 3.2%. That is a decrease from 2023’s COLA of 8.7%. But that is still much higher compared to the 10-year average annual increase from 2011 to 2020 of only 1.5%.
Increase in 2024
Starting in January 2024, everybody receiving Social Security benefits will see their monthly benefit increase by 3.2%. The average monthly Social Security benefit check for all retired workers in 2023 was $1,848. If you add the 3.2% COLA increase for 2024, that will increase that amount to $1,907 per month. That makes for an average monthly increase of $59 or an annual increase of $708 ($59 x 12).
Please note: approx. 70 million people receive a Social Security benefit check every month and the average monthly benefit of $1,848. Remember, it is just that: an average.
Some people receive monthly benefits much higher than $1,848. If someone is receiving a monthly Social Security benefit of $2,500 per month, then they will see their monthly benefit increase to $2,580. That is an increase of $80 per month or $960 ($80 x 12) for the year. Many people receive monthly Social Benefit checks even larger than that. And they will experience even larger dollar increases in their benefit checks in 2024.\ with a COLA increase of 3.2%.
Even if you have not claimed your benefits, and you are between the ages of 62 – 70, you still benefit from the 3.2% COLA increase even though you have not claimed. If you look at your current Social Security benefit statement for 2023, all the benefit amounts will have a COLA increase by 3.2% in 2024.
Some people may be disappointed with the drop in the COLA increase from 8.7% in 2023 to 3.2% in 2024, but like I said before, a 3.2% increase still beats the 10-year annual average of COLA increases from 2011 to 2020 of only 1.5%. It also beats the 20-year annual average of COLA increases from 2001 to 2020 of only 2.1%.