Personal finance

Social Security cost-of-living adjustment will be 3.2% in 2024, well below this year’s record-setting increase

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Social Security beneficiaries will see a 3.2% boost to their benefits in 2024, the Social Security Administration announced on Thursday.

The annual cost-of-living adjustment for 2024 will affect more than 71 million Social Security and Supplemental Security Income beneficiaries. These benefit adjustments are made annually to help benefits keep place with inflation.

The change will result in an estimated Social Security retirement benefit increase of $50 per month, on average. The average monthly retirement benefit for workers will be $1,907, up from $1,848 this year, according to the Social Security Administration.

Most Social Security beneficiaries will see the increase in their monthly checks starting in January. SSI beneficiaries will see the increase in their December checks.

The 2024 benefit increase is much lower than record 8.7% cost-of-living adjustment Social Security beneficiaries saw this year, the biggest boost in four decades in response to record high inflation. It is also lower than the 5.9% cost-of-living adjustment for 2022. 

The 3.2% increase is in line with an estimate released last month by The Senior Citizens League, a nonpartisan senior group.

The Social Security cost-of-living adjustment is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W.

The 2024 adjustment comes as many retirees are still struggling with higher prices.

This is breaking news. Please check back for updates.

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