COLA 2024 is 3.2%

Calculate Your Disability Benefit

As we approach 2024, Social Security Disability Insurance (SSDI) recipients must understand the expected changes in their benefits. The anticipated 2024 COLA (Cost-of-Living Adjustment) increase for SSDI is a topic of significant interest, promising adjustments in line with economic shifts. This article delves into what the 2024 COLA estimate increase means for you and how it’s determined.

COLA 2024 Estimated 3.2%

Social Security and Supplemental Security Income (SSI) benefits for more than 71 million Americans will increase 3.2 percent in 2024. This is significantly lower than what we saw in the last two years.  The last two COLAs were historical increases of 8.7% in 2023 and 5.9% in 2022.
Although the 3.2% estimate seems low, and it is compared to 2022 and 2023, the 2024 estimate is still higher than what we have generally seen over the last 23 years.  Since the year 2000, the average COLA is 2.6%.  Arguably this number is skewed due to the extraordinary increases seen in the last two years as the average for the first 20 years of this century was merely 2.1%.

Understanding the Social Security Administration’s Role

The Social Security Administration (SSA) plays a pivotal role in the lives of millions of Americans, especially those relying on SSDI benefits. The SSA is responsible for calculating and implementing the annual COLA, ensuring that your benefits keep pace with inflation. Understanding the SSA’s processes and decisions is key to comprehending how your benefits are adjusted annually.

How COLA is Calculated: The Consumer Price Index

One of the primary factors in determining the COLA is the Consumer Price Index (CPI). This index measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The CPI is a critical economic indicator used by the SSA to adjust benefits, ensuring that your SSDI payments reflect the current cost of living.
Social Security Disability COLAs are calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).  In the COLA calculation, SSA compares the average CPI-W for the entire third quarter against the average for the same period in the previous year.
Interestingly, in May 2023, the CPI-W rose by 3.6% year over year.  This is almost a full percentage point higher than the Senior League’s estimated COLA of 2.7%.  The lower estimate had to have been made due to the continued downward trend of inflation indicating that the Senior Citizens League experts believe that inflation will decrease by that amount over the next four months.
Cola 2024

How Much Will My Benefit Increase?

Again, the 3.2% increase is only an estimate, but if the estimate holds true, we can start by looking at the maximum monthly benefit in 2023 of $3627.  This would increase by about $98 to $3,725.  If we look at the average disability payment in 2023, which is around $1,500 per month, a 3.2% COLA would put an extra $40 per month into the pocket of the individual currently receiving that amount.

Still Not Enough

Despite the prior two COLAs, according to a survey done by the Senior Citizens League, 53% percent of social security recipients doubt that they will recover from the increases in actual inflation, stating that actual household costs rose more than the dollar amount of their COLAs.  Although we are excited that inflation is trending downward, we do hope that the 2024 COLA provides beneficiaries with much-needed relief.
As we look towards 2024, staying informed about the SSDI COLA increase is vital. This adjustment not only reflects broader economic trends but also directly impacts the financial stability of SSDI recipients. Stay tuned for more updates as we continue to monitor the economic indicators and decisions by the Social Security Administration.

FAQ for COLA 2024

What is the Cost-of-Living Adjustment for 2024?

The 3.2 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 66 million Social Security beneficiaries in January 2024.

See If You Qualify!

SSDI Benefits Calculator

How Much Can I Expect In SSDI Payments?

In 2024, you could be eligible for up to $3,822/month in SSDI benefits.

October 10, 2023

Written by Courtney Bargo

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October 10, 2023

Written by Courtney Bargo

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Submit a Comment

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