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Social Security Benefit Increase: $58 Raise Coming Soon

Social Security Benefit Increase: $58 Raise Coming Soon. Americans who are already receiving Social Security benefits can look forward to a permanent $58 increase in their monthly payments.

The exact amount of Social Security benefits can change each year, and this includes all types of retirement benefits, whether for disability or other reasons. To combat inflation, both the Social Security Administration (SSA) and the United States Government adjust retirement benefits annually.

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Yearly Increases in Benefits

Every new year brings the possibility of increased Social Security benefits. The extent of this increase is determined by various factors, primarily driven by the Cost of Living Adjustment (COLA). Thanks to COLA, most retirees in the United States can expect a $58 boost in their monthly checks.

However, it’s important to note that not all Americans will see a $58 increase. The actual raise varies for each individual. For instance, someone receiving the maximum monthly benefit of $4,555 will experience a different increase. The key point here is that COLA is available to all Americans.

Fighting Inflation

The primary aim of COLA is to combat the effects of inflation. This annual adjustment ensures that Social Security beneficiaries have a little extra money each month to cope with rising living costs. Have you calculated how much your retirement benefits will increase in 2024?

How Much Will Social Security Benefits Increase?

The COLA increase for Social Security checks in 2024 is set at 3.2%. For an average benefit of approximately $1,888 per month, this translates to a $58 monthly increase. Other benefits will rise proportionally to their existing amounts.

For example, if someone currently receives the maximum benefit of $4,555 per month, their payment will increase to around $4,700. While $150 might not seem substantial, when considering a full year of payments, it adds up significantly.

Broad Application of COLA

The COLA increase extends to all Social Security Administration payments, including Supplemental Security Income, disability benefits, widow’s and widower’s payments, and more.

When Will the COLA Take Effect?

The COLA adjustments will take effect with the first Social Security payments in 2024. This means that from that point onwards, all checks will reflect the 3.2% increase. However, many Americans may see the effects of this increase in 2023 if they meet specific criteria.

To benefit from the 2024 COLA increase in 2023, two conditions must be met. Firstly, individuals must be recipients of Supplemental Security Income. Secondly, they must have Direct Deposit activated. As January 1st is a holiday, the SSI payment is sent out on the preceding business day (December 29th), allowing Direct Deposit recipients to access their January 2024 SSI check earlier.

For those without Direct Deposit, the money will be available on the regular schedule. All other payments subject to the COLA will adhere to the usual Social Security payment calendar. Therefore, many Americans will see the increase in their checks either on the 3rd of January or on the second, third, and fourth Wednesdays of the month.