If you are currently receiving Social Security benefits, you may be aware that the amount of your benefits check is going to increase next year. A cost-of-living adjustment will be going into effect, which will result in retirees and other Social Security recipients getting more money.
But, exactly when will you start to get those bigger payments? Here's what you need to know so you can make plans for the money that is going to be coming into your household soon.
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Here's when retirees will get their additional Social Security benefits for 2024
Social Security recipients are on track to get a 3.2% increase in their checks beginning in 2024. This is happening as a result of the fact that the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) showed that the price of goods and services had gone up. The 3.2% bump up in benefits is designed to help ensure that Social Security recipients do not lose buying power due to inflation. It's called a cost-of-living adjustment.
The extra money will start coming in the first payment for the 2024 benefits year. For recipients of Supplemental Security Income (SSI), that first check is the one that comes in December. SSI beneficiaries will see their COLA increase starting with their Dec. 29, 2023 payment. Those who receive retirement benefits, on the other hand, will get their extra money with their first January payment after the New Year.
Social Security is also sending notifications out about the upcoming benefits increase. COLA notices are mailed throughout the month of December. Since these notices are mailed at different times, though, don't panic if you don't receive your notification about your COLA right away. In fact, Social Security says not to contact them until January about a notice that did not come.
For those who don't want to wait to receive their notice until it comes in the mail, the document will be available online at my Social Security starting in early December. You can log in and see exactly how much your new benefit amount is going to be after the COLA takes effect so you won't be surprised.
You can also estimate your own benefits increase by multiplying the current amount of Social Security payments you are receiving by the 3.2% increase and, if applicable, subtracting the increase in Medicare Part B premiums that will go into effect in 2024. Those who pay the standard premium for Medicare Part B will see a $9.80 added monthly charge for Medicare compared with what they were paying last year since premiums are increasing, and Medicare payments are usually withdrawn right from Social Security checks.
Make a plan for the additional money in your check
While you may be excited to get your first larger check, remember that a COLA isn't really "extra" money in the sense that it is supposed to increase your buying power. Instead, it's intended to provide the additional cash you need to account for rising prices of goods and services.
So, once your bigger check begins coming in the mail or is deposited into your account, be sure to make a budget and use it wisely so you aren't left with too little money to cover the necessities.
