Some residents say that increase is not enough to cover rising costs.
Social Security and Supplemental Security Income (SSI) benefits for more than 71 million Americans will increase 3.2 percent in 2024, the Social Security Administration announced last week. On average, Social Security retirement benefits will increase by more than $50 per month starting in January.
The Social Security Act provides for how the cost-of-living adjustment (COLA) is calculated and ties the annual COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Federal benefit rates increase when the cost-of-living rises. The CPI-W rises when inflation increases, leading to a higher cost-of-living. This change means prices for goods and services, on average, are higher. The cost-of-living adjustment (COLA) helps to offset these costs.
“Social Security and SSI benefits will increase in 2024, and this will help millions of people keep up with expenses,” said Kilolo Kijakazi, Acting Commissioner of Social Security.
The increase is much smaller than last year’s cost-of-living adjustment, when recipients saw an 8.7 percent increase in their benefits, the largest since 1981. The estimated average monthly social security benefits for all retired workers is $1,907.
Plant City resident George D. hoped for a larger increase. “It doesn’t make sense that food costs have gone up 11 percent in the last year and are predicted to increase another 5.8 percent in the next year so you’re losing money and that’s just food,” he said. “Rents, cars, taxes and insurance have all increased.”
His advise to workers who haven’t retired yet is to sock away money for retirement. “When you finally retire you’ll be singing the same story, don’t plan your life just to live on social security in retirement because you can’t live on that,” he said. “It’s to supplement what you did as a smart human being so set yourself up with a 401k or other investments.”
The Social Security Administration also announced other adjustments affecting workers making contributions to social security coffers that will take effect in January based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $168,600 from $160,200.
Social Security will begin notifying people about their new benefit amount by mail starting in early December. Individuals who have a personal “my Social Security” account can view their COLA notice online at ssa.gov/myaccount. To learn more about how the COLA is determined visit ssa.gov/cola.
