2024 Social Security Payments Expected to Increase by 3%

The Social Security cost of living adjustment (COLA) for 2024 is looking increasingly like it may be around 3%, based on consumer price data released on August 10, according to The Senior Citizens League (TSCL).

Overall, the inflation rate in July is significantly lower than a year ago.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), the index used to determine the COLA, was up 2.6% year over year.

However, the average monthly inflation rate has risen slightly, especially since January of this year, keeping the COLA estimate at 3%, based on July price data.

July CPI data is important because the COLA is calculated based on inflation during the third quarter — July, August and September, as measured by the CPI-W.

Inflation for those three months is added together and averaged, then compared with the third quarter average from one year ago.

The percentage difference between the two is the amount of the COLA, which would be payable for the check received in January 2024. The 2023 COLA computation can be found at http://www.ssa.gov/cola.

A COLA of 3% would raise an average monthly benefit of $1,789 by $53.70.

In 2023, Social Security recipients received the highest COLA in more than 40 years, but 79% of retirees report that lingering high prices continue to impact household budgets significantly.

The COLA announcement is expected to be made on October 12.