2024 Social Security COLA: Back to Earth

October 12, 2024 –The 2024 Social Security COLA Increase is coming back to earth. Administration announced today that Social Security and Supplemental Security Income (SSI) benefits for more than 71 million Americans will increase 3.2 percent in 2024. That is a considerable drop from the inflation-fueled 8.7% increase of 2023.

A 3.2 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 66 million Social Security beneficiaries in January 2024. Increased payments to approximately 7.5 million SSI recipients will begin on December 29, 2023. The average beneficiary will see an increase of between $50 and $59 per month.

Read more about the 2024 Social Security COLA Increases – Cost-of-Living adjustment for 2024.

The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $168,600.

The earnings limit for workers who are younger than “full” retirement age (see Full Retirement Age Chart) will increase to $22,320. (We deduct $1 from benefits for each $2 earned over $22,320.)

The earnings limit for people reaching their “full” retirement age in 2024 will increase to $59,520. (We deduct $1 from benefits for each $3 earned over $59,520 until the month the worker turns “full” retirement age.)

There is no limit on earnings for workers who are “full” retirement age or older for the entire year.

2024 Social Security COLA

This year’s 2024 Social Security COLA (cost of living adjustment) of 3.2% is considerably smaller than that of 2023’s. It is a reflection that the inflation fueled by the pandemic and all its woes is getting under control.

For further reading:

How Much Can You Work and Not Affect Your Social Security Benefit

Which of These 5 Myths About Social Security Will Wreck Your Retirement?