COLA Effect On Social Security In September 2024 – Check SSI, SSDI Effects Of COLA

The Cost of Living Adjustment plays a significant role in determining the yearly increase in Social Security payments for Americans. In order to ensure that benefits stay up with inflation, the government determines COLA using information from the Consumer Price Index (CPI).

COLA Effect On Social Security In September 2024 will be determined by the August and September CPI data, which will show how much payments will increase. The CPI data for July, August, and September is especially crucial because it helps set the COLA for the next year.

COLA Effect On Social Security In September 2024

The government uses CPI data to inform Social Security benefit adjustments made annually to help recipients keep up with inflation. These changes impact benefits such as SSDI and SSI. The CPI data for July was released in August 2024, and the next crucial date is September 11, 2024, when the August CPI will be available.

The September data will also be made public by mid-October, allowing the government to finish calculating the COLA for the upcoming year. These changes ensure that Social Security payments remain sufficient as living costs rise.

Cost of Living Adjustment 2024

Department	Social Security Administration
Program	COLA
Country	USA
2024 Increase	3.2%
Benefit	Boosts Social Security payments
Category	Government Aid
Official Website	https://www.ssa.gov/

Impact of COLA on Social Security Recipients

Not just those receiving SSDI or SSI, but all Social Security recipients are impacted by the COLA, which is based on the CPI. The government will determine how much benefits will increase in 2025 by setting the COLA for the following year after reviewing the CPI data for July, August, and September.

On September 11, 2024, the CPI for August will be made public, and the September data will be released in the middle of October. These changes are necessary for ensuring that recipients of Social Security benefits receive enough money to keep up with annual increases in living expenses.

COLA Raise 2024

• The COLA for 2024 will increase by 3.2%, helping over 71 million U.S. citizens, starting on January 1.
• Retirement benefits will increase by $50, and in 2023, the Social Security maximum taxable earnings will increase from $160,200 to $168,600.
• The retirement earnings test are going to increase to $59,520 for individuals at full retirement age and $22,320 for those under retirement age.
• The SSI limit for non-blind individuals will increase to $1,550, and for blind individuals, it will increase to $2,590.
• Individual SSI payment rates are going to increase to $943, while married couples’ rates will increase to $1,415.

Social Security COLA History

There have been a number of changes to the Social Security Cost of Living Adjustments in recent years. The COLA rate was 1.5% beginning in 2014 and 1.7% in 2015. There was no increase implemented in 2016, so the adjustment was 0.0%. The COLA for 2017 was a small 0.3%. However, there were significant increases of 2.0% and 2.8% in 2018 and 2019, respectively.

In 2020, the adjustment rate decreased to 1.6%, and in 2021, it increased to 1.3%. A significant rise happened in 2022 with a 5.9% adjustment, and the pattern continued in 2023 with an even larger 8.7% increase. The COLA increase for 2025 is still unknown, but the adjustment for 2024 is expected to be 3.2%.

CPI or Inflation Data Update 2024

• The July 2024 Consumer Price Index (CPI) data were released by the U.S. Bureau of Labour Statistics.
• The CPI grew by 0.2% in July for all items, significance that it has increased by 2.9% year over year.
• Prices in some categories, such as food, increased by 2.2%; energy prices, by 1.1%; and the CPI, which includes all items but food and energy, increased by 3.2%.
• This data will influence the Cost-of-Living Adjustment for the upcoming year.

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