In 2024, the Cost of Living Adjustment (COLA) will be increased by 100%. Estimates predict that the most recent inflation report will enhance it by 3%, but this advantage will not be available to everyone. To be clear, only persons with Social Security are eligible for COLA, but the rise will not be available to everyone. These gains have risen to their greatest level in four decades, and recipients could expect a slightly more modest growth in monthly payments by 2024. This inflation, together with the adjustment to a global epidemic that does not appear to be ending, has been driving the continual COLA rises over the previous few years.
To be clear, the COLA adjustment will not be available to everyone who requested for it, and it will not be available to everyone who receives Social Security. The main issue is that such COLA increases are only available if you apply for retirement benefits after the age of 62. You will get adjustments for any years between your initial eligibility (at 62) and the date you submitted your first tax return. If you claim Social Security immediately after turning 62, you may not be eligible for such changes. Inflation projections are expected to rise throughout the month of September, maybe even more than they did in August.
2024 COLA Projection: Largest Benefit Increase in Decades
As a result, COLA is expected to grow by nearly 3% in 2024, bringing the average Social Security retirement income of $1,837 per month up to an additional $55 per month. This will also be a significant departure from the prior two years. Increased from 5.9% to 8.7%. This is by far the largest percentage increase in benefit adjustments since the early 1980s.