Social Security Benefits to Rise 3.2% in 2024 Due to Cost-of-Living Adjustment

The increase will affect millions of SSI and Social Security beneficiaries, although it's significantly lower than this year's historical 8.7% hike.

Morristown, NJ — The Social Security Administration announced on Thursday that beneficiaries of Social Security and Supplemental Security Income (SSI) will experience a 3.2% rise in their monthly payments in 2024. The increase, though considerable, pales in comparison to the 8.7% jump witnessed this year, the largest in over four decades.

The increase is part of an automatic cost-of-living adjustment, commonly referred to as COLA. This adjustment aims to offset the effects of inflation and is calculated based on the Consumer Price Index provided by the U.S. Department of Labor's Bureau of Labor Statistics.

For local residents relying on these federal benefits, the adjustment means that the maximum monthly SSI payment for individuals will increase from the current $914 to $943 next year. Couples can expect their maximum payment to rise from $1,371 to $1,415.

"The new amounts will take effect for about 7.5 million SSI beneficiaries nationwide starting Dec. 29," said officials from the Social Security Administration. 

Higher payments for those under the Social Security program will commence in January 2024.

Moreover, actual payments could be even higher for some beneficiaries, as several states provide additional financial support. In New Jersey, this is particularly pertinent, as the state has its own supplemental program that could enhance these federal payments further.

Residents should expect to receive notices detailing their new payment amounts in early December. Those with online accounts on the Social Security Administration's website will also be able to access this information digitally.

While the 3.2% increase may bring some financial relief to recipients, it does not match the extraordinary 8.7% bump beneficiaries received this year, which marked the largest year-over-year hike in more than 40 years. Nevertheless, for millions of Americans relying on Social Security and SSI, including residents in Morristown and across Morris County, any increase in monthly benefits is a welcome change.