Social Security announced a 3.2% cost-of-living adjustment (COLA) for 2024. (Photo: MarketWatch)
Understanding the Impact of the COLA Adjustment on Social Security Checks and Benefits
Social Security announced a 3.2% cost-of-living adjustment (COLA) for 2024. To offset inflation, this adjustment raises monthly benefits by $58 on average. With the highest permissible amount for seniors set at $4,873, this increase has changed the monthly checks received by 70 million Americans on Social Security.
One significant consequence of the COLA modification is the disparity in the allocation of social security payments depending on recipients’ birthdates. Those born before the 10th of the month have already been paid, while individuals born between the 11th and the 20th can anticipate their checks on January 17. Conversely, those born after the 21st will receive their monthly benefits on January 24. This change is expected to impact a broad segment of Social Security beneficiaries, highlighting the need for thoughtful financial management.
The modification also affects disabled child benefits, government pensions, and benefit suspension due to criminal convictions. The modification may affect citizenship status and the need to notify the Social Security Administration of name changes, requiring a thorough understanding of Social Security benefits requirements.
READ ALSO: Montana SNAP Program Begins February Payments, Valued Up To $1,751
Seniors must prepare for financial issues after the 3.2% COLA hike in 2024. Continue working, diversify investments, keep an emergency fund, manage debts, and cut costs. These solutions help retirees and Social Security beneficiaries cope with the smaller-than-usual COLA and maintain financial security.
Social Security recipients must understand the broader consequences of the 3.2% COLA rise and plan for financial issues. This modification impacts Social Security eligibility, financial sustainability, and long-term financial planning for retirees and beneficiaries as well as monthly check amounts.
READ ALSO: 2024 EV Tax Credit Rules: What’s Changing
