Americans to Get Higher Social Security Payments This Week
Higher Social Security payments are coming for 2024, but many seniors may not know when they can expect the higher cost-of-living checks.
Each year, the Social Security benefit amount is changed according to a cost-of-living adjustment (COLA). For 2024, the Social Security Administration (SSA) decided the payments would increase by 3.2 percent to match the current level of inflation for groceries, housing and other necessities.
This marks a sharp decline compared with 2023’s payment boost, which was a whopping 8.7 percent because of high inflation a year ago. Inflation has since dropped to 3.1 percent as of last month.
Social Security payments have changed significantly in recent years because of the COLA increase. Since 2015, the adjustments have ranged from 0 to 8.7 percent.
An older couple walks along the shore on December 20, 2017, in Pismo Beach, California. Social Security payments will increase by 3.2 percent in 2024, but some experts say it’s not enough to cover seniors’ higher living expenses.
George Rose/Getty Images
In 2024, Social Security recipients can expect their monthly check to increase by an average amount of $1,848 to $1,907. The maximum benefit will increase to $3,822 monthly in 2024, up from $3,627 in 2023.
About $1.4 trillion in payments are sent to more than 70 million people each year, and more than 8 million people have started receiving benefits over the past decade, the SSA says.
“For more than 85 years, Social Security has provided income protection for retirees, adults and children with disabilities, and families who lose a wage earner,” Kilolo Kijakazi, acting commissioner of Social Security, said in a statement. “Despite our recent history of chronic underfunding, Social Security remains among the most trusted agencies in the Federal Government.”
In 1980, Social Security payments increased by a record amount, 14.3 percent. This year’s 8.7 percent increase was the highest since the jump from over four decades ago.
When the Checks Are Sent Out
Not everyone will get 2024’s boosted checks at the same time.
The SSA’s first round of increased payments will go out to around 7.5 million Supplemental Security Income beneficiaries on December 29. The checks are being sent early because January 1 is a holiday.
In January, 66 million Social Security recipients will see updated payments, with the specific day depending on your birthday. Those born between the first and 10th of the month can expect checks on the second Wednesday of the month, January 10.
Those born between the 11th and 20th will see the new payments arrive on the third Wednesday, January 17. Americans born between the 21st and 31st of their birthday month will see the COLA boost in their payments on Wednesday, January 24.
However, if you started receiving Social Security before May 1997, your payments will arrive on January 3, no matter your birthday.
Dissatisfied With the 2024 COLA
The 3.2 percent increase in next year’s Social Security payments means additional money in seniors’ pockets as they deal with retirement expenses, but for many it doesn’t appear to be anywhere near enough.
“While the 3.2 percent adjustment acknowledges inflation, it’s insufficient against the rise in all essential living costs such as utilities, health care and food,” Hannah Workman, a member of the creative team for legal help platform Atticus, told Newsweek.
Atticus said in a recent report that 70 percent of single seniors are struggling financially, and about 40 percent of seniors are considering going back into the workforce as prices continue to surge.
“The need for nearly 40 percent of seniors to consider employment underscores the disconnect between the COLA increase and the reality of seniors’ expenses,” Workman said.
Overall, a majority of seniors in the Atticus survey voiced dissatisfaction with the COLA for 2024. Sixty-two percent of the 400 Americans over 62 who were polled said they were unhappy with the payment bump.
“About that 3.2 percent COLA increase for 2024, well, it sounds good on paper, but honestly it’s not quite cutting it for seniors,” Christopher Hensley, a financial adviser and the president of Houston First Financial Group, told Newsweek.
He said the consumer price index (CPI) doesn’t fully reflect the reality of living expenses for older adults compared with the CPI-E. The CPI-E (for the elderly) is often thought to be a better measure, reflecting what people aged 62 and older spend their money on.
“It’s a big deal because things like health care, which, let me tell you, can be a major expense, weigh more in the CPI-E,” Hensley said. “Seniors often end up spending way more on health care than younger people, and those costs just keep climbing as they get older.”
He continued: “So when the COLA is based on that, it doesn’t really match up with the real-life financial squeeze they’re feeling, especially with health care costs, which seem to be always on the rise. This mismatch has some serious consequences.”
Uncommon Knowledge
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
