More than 71 million Americans depend on Social Security benefits, so the expected rise in payments for 2024 is very important to them. For seniors, people with disabilities, and other groups that depend on these payments to meet their daily needs, the upcoming change, which is usually called the Cost of Living Adjustment (COLA), is especially important.
The COLA’s main purpose is to smooth out the effects of inflation, which can make fixed incomes less valuable over time.
Social Security Administration (SSA) has predicted a COLA of 2.63% for 2024, but they don’t have all of their data yet to back up their estimates. People who will benefit from this expected rise will feel a lot better, especially since prices for basic goods and services are going up.
The change is expected to give people a small but meaningful cash boost, which will help them deal with the problems that inflation continues to cause.
While the COLA is a big change that most people are looking forward to, there are more big changes coming for people who get Supplemental Security Income (SSI). Starting in October 2024, some SSI recipients may see their wages go up.
This change is part of a larger plan to change the SSI program so that it is easier for the most needy people to get and more fair for everyone. The goal of these changes is to make it easier for people to get benefits and make sure that those who need help the most get it.
Key changes in SSI
A new rule about food aid that will start on September 30, 2024, is one of the most important changes to the SSI program. Food aid from friends, family, or community groups has been seen as unearned income under the present system. In the past, this ranking could have led to lower monthly SSI payments or even changed who could get benefits.
But after the new rule goes into effect, food stamps will no longer be seen as unearned income. With this change, SSI users who depend on food stamps will be able to get their full monthly benefits without worrying about being fined or having their payments cut.
A big step toward making the SSI program more fair is thought to be the addition of this new rule. The SSA is making sure that more vulnerable people can get all the benefits they are due to without having to give up extra help from friends and family by getting rid of barriers that used to make it illegal to get help from outside sources.
People and families with low incomes often depend on a mix of public benefits and community support to meet their basic needs. This change is especially important for them.
Impact of the COLA on Social Security
The 2024 COLA and the SSI changes will have effects that go beyond just lowering inflation. These changes show that the SSA has changed how it calculates and gives out benefits. The Social Security Administration (SSA) is recognizing that its users have different needs and is making changes to the system to make it more responsive, fair, and better able to meet those needs.
The 2024 COLA change is mostly meant to fight the effects of inflation, but it also shows that the SSA is committed to changing its policies to better meet the needs of all beneficiaries, especially those who need extra help. The exact amount of the increase has not been decided yet, but the changes that are planned show that the SSA is committed to making the distribution of resources more fair and equal.
These are just the first steps that the SSA is taking to change how it works and make it better for its people. There will be more work to do, and the group is making progress in bringing its methods into the 21st century.