Big Update – Social Security to Announce Check Increase Date Soon

In less than four weeks, the future of Social Security checks will be revealed, and it’s essential to know why it matters. It’s not just about the increase in the amount but how inflation, economic changes, and cost-of-living adjustments (COLA) will impact the actual value of these benefits. Let’s investigate how Social Security checks get updated and what to expect for the upcoming year.

Updates

Social Security checks are updated annually, a practice that has been in place since 1975. The primary goal of these updates is to adjust benefits to account for inflation. As prices rise, the value of money decreases, meaning people need more income to maintain their purchasing power. This is known as inflation eroding purchasing power.

For people in the workforce, inflation can be counteracted through raises, job changes, or salary adjustments. However, once you start receiving Social Security benefits, increasing your income isn’t as simple.

For retirees or those on disability, Social Security checks may be their primary, or only, source of income. This makes these annual adjustments crucial for maintaining financial stability.

To protect beneficiaries from the harmful effects of inflation, the government uses a mechanism called COLA (Cost-of-Living Adjustment). COLA is based on a specific measure of inflation known as the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index tracks the prices of around 200 goods and services, including food, housing, and healthcare, which are grouped according to the needs of urban wage earners.

Each year, COLA is determined by averaging the inflation data from the third quarter (July, August, and September). This value is compared to the previous year’s third quarter to establish the percentage increase for Social Security benefits.

The calculation is done in October, and beneficiaries receive a letter in December with the updated value of their checks. You can also check this information through your My Social Security account on the Social Security Administration’s website.

COLA

Inflation doesn’t just impact those on Social Security—it affects everyone. But the difference is that wage earners can take proactive steps to adjust their income, while Social Security recipients rely solely on these COLA adjustments.

Inflation impacts your grocery bill, healthcare costs, and utility expenses. Without COLA, Social Security benefits would lose value each year, leaving recipients unable to keep up with rising costs.

This year, the CPI-W for September will be released on October 10th, which will finalize the COLA for 2024. This index, created by the Bureau of Labor Statistics (BLS), provides the essential data to determine how much of an increase beneficiaries can expect.

What to Expect

So, what can beneficiaries expect for 2024? According to The Senior Citizens League, the estimated COLA for next year is expected to be around 2.5%. This is lower than previous years, reflecting the drop in inflation since March 2024. While this increase may seem small, it’s essential to remember that any boost helps offset rising costs for essentials like food, utilities, and healthcare.

Here’s an estimate of what the increase might look like for the major Social Security programs:

Program	Average Payment	Increased Payment (2.5%)
Old Age Insurance	$1,872.09	$1,918.89
Survivor	$1,509.36	$1,547.09
Disability Insurance	$1,402.69	$1,437.76
SSI (Supplemental Security)	$698.51	$715.97

For someone receiving Old Age Insurance, the average monthly benefit would increase by about $46.80, while a Survivor’s benefit would increase by $37.73. These adjustments may seem small, but for many retirees, every dollar counts.

You Should Care

Knowing the COLA process is vital, especially if Social Security is a significant part of your income. Without these adjustments, the value of your benefits would shrink over time, making it harder to pay for necessities. Although the 2024 increase will likely be lower due to reduced inflation, it is still essential for maintaining your standard of living.

By keeping an eye on the COLA and knowing how it works, you can better plan for your financial future. Make sure to check your My Social Security account for updates and review how much your benefits will increase in December.

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