As October comes around and Halloween approaches, Social Security is getting ready to send more checks to millions of people who depend on it. People who depend on these monthly payouts, which include pensions, disability benefits, and Supplemental Security Income (SSI), can’t live without them. Some people may get payments of more than $4,000 this month.
Many people who get benefits are eagerly waiting for news about the Cost-of-Living Adjustment COLA that will be used in 2024 as the year comes to a close. This change, which is usually made public in October, tells people how much their current Social Security payments will go up. COLA is based on the CPI-W, which stands for the Consumer Price Index for Urban Wage Earners and Clerical Workers. It shows how the rate of inflation affects the cost of living.
Increase in Social Security payments in 2024: what to expect
The rise this year is likely to be around 2.5%, which would give beneficiaries a small boost in their monthly payments. The exact number will be released on October 10. This change will have an impact on millions of people who depend on these benefits to pay for basic needs.
Along with the yearly COLA, Congress has been talking about possible changes to the laws that govern Social Security. One of the most important ideas is the Social Security Fairness Act, which would get rid of the cuts that the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) made to benefits. At the moment, these rules cut payments for some people, especially pensioners who used to work for jobs that weren’t covered by Social Security.
If this bill passes, it could protect the payments of many beneficiaries. This would be good news for people whose benefits have been cut because of these law requirements. In the past few months, this problem has gotten more attention, and the voting process may change in the next few weeks.
The longer you wait, the higher the payment
Delaying getting benefits is one of the best known ways to get the most out of Social Security. People must be 62 years old before they can start getting payments, but those who wait get bigger monthly payouts. A person who is 62 years old could get up to $2,710 a month. But if you wait until you’re 70, the amount you have to pay each month can go up by a lot, up to $4,873.
People who get disability payments, on the other hand, can expect up to $3,822 a month. Those who care for two children can get up to $3,953 in survivor payments. SSI recipients, on the other hand, get an average of $698 a month. This need-based program is for people who don’t have a lot of money or resources, and it’s often paired with payments for disability or retirement.
How are Social Security payments calculated?
How much someone gets from Social Security relies on a lot of things, like how long they’ve worked, when they decide to start getting benefits, and sometimes their health or family situation. The monthly payment will be bigger if the person has worked longer and made more money over the course of their job.
These payouts are calculated and sent out by the Social Security Administration (SSA), which makes sure they get to the millions of people who depend on them on time. In addition, yearly COLA changes help beneficiaries keep their purchasing power even as prices rise.