COLA Increases – 3.2% in 2024

Per the release of the October CPI report, we now have the Cost of Living Adjustment (COLA), and the contribution base for 2024.

From Social Security: Social Security Announces 3.2 Percent Benefit Increase for 2024

Social Security and Supplemental Security Income (SSI) benefits for more than 71 million Americans will increase 3.2 percent in 2024, the Social Security Administration announced today. On average, Social Security retirement benefits will increase by more than $50 per month starting in January.

Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $168,600 from $160,200.

Currently CPI-W is the index that is used to calculate the Cost-Of-Living Adjustments (COLA). Here is a discussion from Social Security on the current calculation (3.2% increase) and a list of previous Cost-of-Living Adjustments.

The contribution and benefit base will be $168,600 in 2024.

The National Average Wage Index increased to $63,795.13 in 2022, up 5.3% from $60,575.07 in 2021 (used to calculate contribution base).

Leave a Comment

Your email address will not be published. Required fields are marked *