20.6% Boost For SSDI, SSI & VA Benefits: There’s been a lot of buzz lately about a possible 20.6% raise in Social Security, SSDI, SSI, and VA benefits. But what’s the real story? In reality, this rumored increase is hypothetical and not something the U.S. government has announced.
Instead, the official cost of living adjustment (COLA) for 2024 is 3.2%. Let’s dive into the facts about this increase, backpay rumors, and what you can expect moving forward.
Understanding Backpay
First off, what is backpay? Backpay refers to money that’s owed to an individual due to missed payments or an underpayment. In most cases, this occurs when someone is wrongfully terminated or there’s been an error in calculating wages.
In the context of Social Security or VA benefits, people sometimes refer to backpay as compensation for past underpayments.
However, in this case, the discussion of a 20.6% backpay raise stems from a hypothetical scenario.
In online discussions and videos, some individuals have speculated that, if the 2023 COLA had been higher than 8.7%, combined with the 3.2% increase in 2024, beneficiaries would have seen a 20.6% raise. While this is an interesting thought experiment, no official plans have been made to implement this kind of increase.
Social Security and SSI Boost in 2024
Let’s focus on what’s real. As of January 2024, over 66 million Social Security beneficiaries and about 7.5 million SSI recipients will receive a 3.2% increase in their monthly payments.
This adjustment is designed to help people keep up with rising costs due to inflation, as calculated by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
The CPI-W data from July to September of 2023 shows that prices have risen enough to warrant the 3.2% increase. While this is lower than the 8.7% COLA in 2023, it’s still a welcome boost for millions of people.
To put it in numbers, a person receiving $1,800 in benefits could expect about an additional $57 a month, depending on their exact benefit amount.
Hypothetical 20.6% Raise
So, where did the rumor of a 20.6% raise come from? It all started with people running hypothetical calculations.
If the COLA in 2023 had been as high as 17.4% instead of 8.7%, and then the 3.2% COLA for 2024 was added on top of that, beneficiaries would have seen a total increase of around 20.6%.
However, the actual 2023 increase was 8.7%, meaning the current official boost remains at 3.2% for 2024.
This hypothetical raise has gained traction, but the Social Security Administration (SSA) hasn’t made any moves to adjust benefits based on this speculation.
Will There Be Backpay?
As of now, there’s no backpay coming for Social Security, SSI, or VA benefits based on a 20.6% raise. The 3.2% COLA adjustment for 2024 is based on the inflation data provided by the Bureau of Labor Statistics, and the SSA has already factored this into their payments.
It’s essential to stay updated by checking official resources like the SSA website to get accurate information.
Rumors about backpay or unexpected increases often spread quickly, but only official government announcements should be trusted when it comes to your benefits.
What to Expect in 2024
With the COLA set at 3.2% for 2024, beneficiaries will see a moderate increase in their checks starting in January. Here’s a breakdown of what to expect:
- Social Security: 66 million recipients will see a 3.2% increase, which translates into an average monthly increase of around $50 to $60 for most people.
- SSI: 7.5 million people will also benefit from this increase, with payments starting as early as December 2023.
- Maximum taxable earnings: The earnings subject to Social Security tax will increase from $160,200 to $168,600.
Unfortunately, for those hoping for an even bigger increase or backpay, there hasn’t been any announcement to suggest a 20.6% raise or similar bump in benefits.
While a 20.6% increase sounds appealing, the actual raise for 2024 is set at 3.2%. This is based on the government’s calculation of inflation, and there’s no official backpay coming.
Beneficiaries of Social Security, SSI, SSDI, and VA benefits can expect their adjusted payments starting in January 2024. The best way to stay informed is by regularly checking the SSA’s website for any updates.
FAQs
What is the actual COLA increase for 2024?
The official COLA increase for 2024 is 3.2%.
Will there be a 20.6% raise in Social Security benefits?
No, the 20.6% raise is hypothetical and has not been announced.
When does the COLA adjustment take effect?
The adjustment starts in January 2024, with some SSI payments increasing in December 2023.
Will there be backpay for Social Security benefits?
There is no backpay related to a 20.6% raise in Social Security benefits.
How is COLA calculated for Social Security?
COLA is based on the CPI-W, which tracks inflation over the third quarter of each year.
