2024 Social Security Cost of Living Adjustment (COLA) to Increase Retirement Payments by 3.2%
Thursday, October 12, 2023 – The Social Security Administration (SSA) of the United States has announced an important update regarding the 2024 cost of living adjustment (COLA). This adjustment is set to increase to 3.2%, resulting in an overall rise in Social Security and Supplemental Security Income (SSI) collections in the coming year.
Currently, retired North Americans receive an average monthly payment of $1,848.00 USD. However, due to the upcoming COLA increase, this figure will rise to an average of $1,907.00 USD. Notably, those retiring at the full working age can expect the highest payments to be set at $3,822.00 USD.
While individuals have the option to start paying into Social Security as early as age 62, the SSA advises that workers wait until they reach full retirement age to maximize their benefits.
The concept of full retirement age is determined based on the workers’ birth year. For individuals born between 1943 and 1954, the full age is set at 66. However, for those born in 1955 and later, the full age is increased to 67 years.
Employees who choose to delay their retirement past the full age will have access to higher compensation. On the other hand, individuals who opt to retire at age 62, before reaching the full age, will receive lower payments. For those curious about their approximate Social Security income, the SSA provides tools on its virtual site for reference.
This news from the SSA regarding the upcoming COLA increase highlights the importance of planning for retirement and understanding the benefits available. It is advisable for individuals approaching retirement to carefully consider their options, consult with financial advisors, and make informed decisions regarding their Social Security payments.
As the year 2024 approaches, retirees can look forward to an increase in their monthly payments, offering greater financial security during their golden years.