After months of anticipation, the Cost of Living Adjustment (COLA) for 2024 is set to be announced by the Bureau of Labor Statistics on October 10th. This adjustment will have a direct impact on Social Security payments, affecting retirees, survivors, disabled individuals, and those receiving Supplemental Security Income (SSI).
Although the official COLA percentage is yet to be confirmed, it’s important to note that the final two Social Security payments in October will not reflect this increase. Instead, the COLA will take effect with January 2024 payments.
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Schedule
For the month of October, two more Social Security payments are scheduled to be mailed. With over 70 million beneficiaries depending on these monthly payments, the Social Security Administration follows a strict schedule to ensure timely distribution. Here’s what to expect:
- October 16th: Beneficiaries born between the 1st and 10th will receive their payments.
- October 23rd: Another round for beneficiaries with birthdates from the 11th to the 20th.
It’s important to remember that if your payment does not arrive on the scheduled date, it is advised to wait at least three postal days before contacting customer service. Additionally, you can check the status of your payments or other Social Security information by logging into your My Social Security account online.
Payment Amounts
The amount of Social Security payments varies depending on several factors such as age, work history, and the taxes paid during your employment. Here is a breakdown of the current average and maximum payments for the Retirement, Survivor, Disability Insurance (RSDI), and SSI programs:
| Program | Average Payment | Maximum Payment |
|---|---|---|
| Retirement Benefits | $1,900 | $4,873 (Age 70) |
| Survivor Benefits (2 Children) | $3,653 | $1,505 |
| Disability Benefits (Blind Recipients) | $2,590 | $3,822 |
| SSI Benefits (Couples) | $1,415 | $943 |
To receive the maximum payments, recipients must meet specific criteria, such as reaching a certain age or having a lengthy work history. These factors should be discussed with a financial advisor or a Social Security expert who can guide you in maximizing your benefits.
Upcoming COLA Adjustment
The big question on everyone’s mind is how much more Social Security recipients will receive after the COLA is adjusted. According to projections from the Senior Citizens League, a COLA increase of 2.5% could be likely. Based on this projection, these would be the estimated Social Security payments for 2025:
| Program | Average Payment | Adjusted Payment (+2.5%) |
|---|---|---|
| Retirement Benefits (Age 67) | $3,822 | $3,918 |
| Survivor Benefits (2 Children) | $3,653 | $3,744 |
| Disability Benefits (Blind Recipients) | $2,590 | $2,655 |
| SSI Benefits (Couples) | $1,415 | $1,450 |
As shown, the 2.5% COLA adjustment will result in modest increases across the board. These changes aim to help recipients keep up with rising living costs, although the exact COLA percentage won’t be confirmed until the official announcement next week.
Maximizing Your Benefits
If you’re aiming to maximize your Social Security benefits, understanding the various factors involved is crucial. Age, work history, and the specific program you’re enrolled in all play a role in determining your payment amount. Beneficiaries can further maximize their benefits by working longer, deferring retirement, or exploring options like spousal benefits.
To better manage your payments and track adjustments like the COLA increase, My Social Security provides a useful online portal where you can access payment statements, request a Social Security card, and look into additional financial services related to your benefits.
The announcement of the 2024 COLA adjustment brings with it the promise of slightly higher Social Security payments next year. While it may not drastically change your income, the increase is a step towards addressing the rising cost of living. Keep an eye out for the official percentage increase next week, and make sure to check your My Social Security account for any updates.
FAQs
When will the COLA increase take effect?
The increase will apply to payments starting in January 2024.
Will October’s payments include the COLA?
No, October payments won’t include the COLA adjustment.
How can I check my Social Security payment status?
You can check your status via your My Social Security online account.
What is the projected COLA increase for 2025?
The projected increase is around 2.5%, but it’s not confirmed.
