Last month, the Social Security Administration released the cost of living adjustment (COLA) for next year. The adjustment is implemented to counteract the effects of inflation and changes in the cost of living over time.
Each year, the SSA calculates the cost of living adjustment in order make sure the purchasing power of its beneficiaries will not be adversely affected by higher prices. If there has been an increase in inflation, the administration also increases Social Security payments.
Payments administered by the SSA that are affected by COLA include Social Security benefits (retired workers and survivors), Social Security Disability Insurance (SSDI)) and the SSA program called Supplemental Security Income (SSI).
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The COLA is calculated based on data from the Consumer Price Index for Urban Wage Workers and Clerical Workers (CPI-W).
The calculation takes into account the CPI-W data from the third quarter of the previous year and compares them with those from the third quarter of the current year; that is, the data from July, August and September of both years are compared.
According to calculations made by the Social Security Administration. the 2024 COLA will be 3.2%, so Social Security and SSI benefits will increase by that same percentage. When will the adjusted payments come into force?
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