COLA 2024 Estimated 2.7%
Social Security Disability COLA Estimated to be 2.7%.
Just a few weeks ago, the Senior Citizens League estimated the 2024 Social Security Disability cost-of-living-adjustment (COLA) to be 2.7%. 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 2.7% 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%.
How is the COLA calculated?
Social Security Disability COLAs are calculated using the Consumer Price IndexThe measure of the average change over time in the prices paid for goods and services to determine cost of living adjustments. More for Urban Wage Earners and Clerical Workers (CPI-W). In making 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.
How Much Will My Benefit Increase?
Again, the 2.7% 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 2.7% 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.
FAQ for COLA 2024
What is the Cost-of-Living AdjustmentSocial Security benefits and Supplemental Security Income (SSI) payments may be increased in the year following an increase in the cost of living (inflation). More for 2024?
Recently, the Senior Citizens League projected a 2.7% cost-of-living-adjustment (COLA) for Social Security Disability in 2024. This estimate marks a notable decrease compared to the past two years.
0 Comments