Social Security Recipients to Receive 2.8% Cost-of-Living Increase

Millions of Social Security recipients are set to receive a modest cost-of-living increase in their monthly benefits next year, according to the Social Security Administration (SSA). The agency announced on Friday that beneficiaries will see an average increase of 2.8%, which is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

What Does This Mean for Recipients?

The 2.8% cost-of-living increase may not seem like a lot, but it's still a welcome boost for many Social Security recipients who rely heavily on their monthly benefits to make ends meet. For those who have been living off the government-assisted checks, this increase will help keep pace with rising living costs.

How Was This Increase Determined?

The SSA uses a complex formula to calculate the cost-of-living adjustment (COLA). The agency takes into account the latest data on inflation rates from the Bureau of Labor Statistics (BLS) and applies it to the previous year's average monthly benefit amount. In this case, the 2.8% increase is based on the BLS's latest CPI-W data, which reflects the rate of inflation from October 2022 to September 2023.

What Does This Increase Mean for Retirees?

For retirees who are counting on their Social Security benefits to supplement their retirement income, this 2.8% increase can make a significant difference. According to the SSA, the average monthly benefit for a retired worker is around $1,733. With an increase of 2.8%, that means a monthly boost of around $48.

Impact on Other Beneficiaries

While the 2.8% cost-of-living increase applies primarily to retired workers and disabled beneficiaries, it also affects survivors and the surviving spouse of a deceased worker. For these individuals, the COLA will be applied retroactively to January 2024.

When Will Recipients See the Increase?

The SSA has not specified exactly when recipients can expect their increased benefits to start. However, according to agency officials, checks for January 2024 will be mailed out in mid-December 2023. Beneficiaries can also track the status of their benefit payments online through the SSA's website.

History of COLAs

It's worth noting that this 2.8% increase marks the seventh consecutive year of increases to Social Security benefits. The SSA has been applying COLAs since 1975, when the agency began using the CPI-W formula to adjust benefits for inflation.

What's Next?

While this increase may seem small, it's still a welcome boost for millions of Americans who rely on their Social Security benefits to get by. As we head into the new year, recipients can expect continued changes in the world of Social Security. Stay tuned for further updates and insights!

Key Statistics:

• 2.8% cost-of-living increase
• Average monthly benefit amount: $1,733 (retired worker)
• Number of beneficiaries affected: millions
• Years of consecutive COLAs: seven

Sources:

• Social Security Administration (SSA)
• Bureau of Labor Statistics (BLS)