It's hard to overstate just how important Social Security is for the welfare of Americans. Over 70 million people get benefits administered by the Social Security Administration, and millions more enroll in its programs every year.
Social Security is unique in that the payments it makes to recipients get adjusted for inflation every year. Cost-of-living adjustments (COLAs) are intended to help sustain purchasing power, and they've been crucial in recent years as inflation spiked higher.
The COLAs that took effect in 2022 and 2023 were 5.9% and 8.7%, respectively, reflecting the large changes in the Consumer Price Index during 2021 and 2022. Although the pace of inflation slowed in 2023, prices still rose enough to give Social Security recipients a 3.2% bump in their benefits, beginning in 2024.
Yet the big problem with Social Security COLAs is that they're backward-looking. Recipients only get upward adjustments to their checks after the prices they pay for necessities have gone up. It's understandable, therefore, that many people are anxious to get those bigger Social Security checks as soon as possible.
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Unfortunately, it takes time for cost-of-living adjustments to work their way through the system. You might have to wait a few more weeks before you start to see 2024's COLA hit your bank account. Here's why -- and what you need to know about exactly when you can expect to see higher benefits roll in.
When Social Security COLAs get paid
Cost-of-living adjustments appear in Social Security checks paid during the month of January. But exactly when depends on your birthday, and potentially the birthdays of key family members.
If you're claiming your own retirement benefits based on your work history, here's when you can expect to see your first COLA-enhanced Social Security payment:
- Birthday is from the 1st to the 10th day of the month: Jan. 10, 2024 (second Wednesday)
- Birthday is from the 11th to the 20th day of the month: Jan. 17, 2024 (third Wednesday)
- Birthday is from the 21st to the 31st day of the month: Jan. 24, 2024 (fourth Wednesday)
However, there are some other rules that could bring your payment on a different date. They include:
- Long-time Social Security recipients who first filed for benefits before May 1, 1997 can expect payments on Jan. 3.
- Those living in a foreign country also typically have payments issued on the third day of the month.
- Individuals receiving need-based Supplemental Security Income due to disability, age, or blindness will get those payments on the first day of the month. Because Jan. 1 was a bank holiday, those payments likely hit your account on Jan. 2.
Lastly, those who receive spousal or children's benefits based on another person's work record will typically get their payments on the same day as their spouse or parent. Therefore, it will be the birthday of the person on whose work record benefits get paid that will likely determine the timing of your payment.
Why your Social Security might not go up as much as you expect
Another thing to keep in mind is that the size of your check might not go up exactly 3.2%. That's because many people who receive Social Security are also enrolled in Medicare, and monthly premiums for Medicare coverage generally get deducted directly from your benefit.
In particular, the standard monthly premium for Part B medical coverage under traditional Medicare rose $9.80 per month in 2024, going up to $174.70. That means that nearly $10 of your COLA amount could go toward increased Medicare costs. For typical retired workers with an average monthly benefit of $1,848 before applying the COLA, $10 going toward Medicare will represent a sizable part of the $59 overall increase they're entitled to get in 2024.
Even though nearly everyone could benefit from a larger Social Security benefit, the program still does a good job of providing much-needed income to those who no longer work. Even if you haven't yet received your COLA-increased payment, rest assured that it'll be coming to you in the weeks ahead.
