The United States government measured the COLA Effect on Social Security in September 2024, and it can immensely help beneficiaries who rely on the government to cover their bills. This payment will act as financial aid for them and cover their monthly expenses.
The revised payment calendar is released once a year from the department. But starting in 2024, citizens can be helped with the COLA effect to obtain a considerable amount of payment if they are qualified to receive more benefits.
COLA Effect on Social Security in September 2024
Adjusting the cost of living is vital in social security benefits distributed among eligible beneficiaries. The SSA Department calculates the COLA increase yearly to understand the increase required to manage their expenses. Every year, the amount given to the beneficiaries has noticed the same increase as the COLA increase of that year.
Citizens only need to qualify for the eligibility criteria, which the department designs to receive the benefits of programs. This COLA effect on Social Security in September 2024 might bring positive changes in the living standard of citizens who cannot afford a stable lifestyle.
Cost of Living Adjustment 2024
| Name of Department | Social Security Administration |
| COLA | Cost-of-Living Adjustment |
| Country | USA |
| Amount | 3.2% increase for 2024 |
| Payment Mode | Direct deposit or check |
| SSI Limits | Non-blind: $1,550; Blind: $2,590 |
| Category | Government Aid |
| Official Website | www.ssa.gov |
COLA Effect on Social Security Program
The Social Security Administration determines the COLA using the Consumer Price Index of the year’s third quarter. They calculated the Consumer Price Index for Urban and Clerical Wagers (CPI-W), which can help determine inflation rates. The department collects the data from July, August, and September and then, after analyzing, releases the outcome in mid-October.
The United States Bureau of Labor Statistics posted July’s CPI data in mid-August and shared current mid-August data on September 11, 2024. Now, everyone is waiting for their estimation about the COLA increase for 2025. This COLA Effect on Social Security in September 2024 can help residents with an amount sufficient for managing their monthly expenses.
COLA Raise 2024
In the previous year, the authorities of the Social Security Administration released a 3.2% increase in COLA adjustments for the year 2024. This raise will benefit the 70 million Americans who rely on these benefits.
- The maximum taxable earnings for the Social Security benefits increased to $1,68,600 in 2024.
- The retirement test for citizens under retirement age will also increase to $22,320 in 2024.
- The retirement test for citizens with full retirement age is increased to $59,520 in the current year.
- The SSI income threshold increased to $1,550 for non-blind citizens in 2024.
- The SSI income threshold for blind citizens is increased to $2,590 in the present year.
- Individuals’ Supplemental Security Income payment rates increased to $943 in 2024.
- The SSI payment rates for married couples increased to $1415 in 2024.
Social Security COLA History
During the COVID-19 pandemic, the department has noticed the highest COA adjustments in the past few years. Let’s take a look at the social security cost of living adjustments of the previous five years:
| Year | COLA Increase |
|---|---|
| 2020 | 1.6% |
| 2021 | 1.3% |
| 2022 | 5.9% |
| 2023 | 8.7% |
| 2024 | 3.2% |
| 2025 | 2.5% Expected (Finalization Pending) |
CPI or Inflation Data Update 2024
The US Bureau of Labor Statistics’ July 2024 Consumer Price Index information has just been published, determining the income adjustment for the following year. The July 2024 overall CPI was up 0.2% for all items, up 2.9% from July 2023 to July 2024.
The Bureau will release the August CPI on September 11, 2024, and the September report the following month. The following represents the 12-month CPI change for selected groups:
- All items: 2.9%
- Food: 2.2%
- Energy: 1.1%
- All items less food and energy: 3.2%
That figure will help dictate how much Social Security and other federal benefits are adjusted for the coming year.
FAQs
Why is COLA important?
COLA helps Social Security benefits keep up with inflation and rising costs of living.
Can the COLA increase vary from year to year?
Yes, the COLA adjustment varies each year based on inflation and cost-of-living changes.
What is the projected COLA increase for 2025?
The projected COLA increase for 2025 is 2.57%, with confirmation expected in October 2024.