Tip of the Month | November 2023
Social Security Cost of Living Adjustment
Written By: Andrea Bulen, CFP®
Do you receive a monthly Social Security check? If so, you’ll get a raise in 2024. This year’s raise won’t be as generous as last year’s 8.7% increase, but retirees will still see a 3.2% increase. A retiree with a $2,000 benefit will receive a bump of $64/month.
Note: The Social Security Act provides for how the cost of living adjustment (COLA) is calculated. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as determined by the Department of Labor’s Bureau of Labor Statistics.
The 3.2% increase falls a bit short of the latest inflation number that came in at 3.7%. Still, the increase will help retirees keep up with the increase in expenses.
Don’t expect the full increase on your January check because some of it will go towards Medicare premiums that will also increase. The standard monthly premium for Medicare Part B enrollees will be $174.70 for 2024, an increase of $9.80 from $164.90 in 2023. The $9.80 equates to a nearly 6% increase vs the 3.2% in Social Security benefit.
Social Security begins notifying people about their new benefit amount by mail starting in early December. Individuals who have a personal my Social Security account can view their COLA notice online, which is secure, easy, and faster than receiving a letter in the mail. People can set up text or email alerts when there is a new message – such as their COLA notice – waiting for them in my Social Security. People will need to have a my Social Security account by November 14 to see their COLA notice online. To get started, visit www.ssa.gov/myaccount.