63.4% Social Security Hike Coming Very Soon: Know Eligibility & More Details

Many seniors and people relying on Social Security payments are in for a major financial boost.

The U.S. government has announced a staggering 63.4% raise in Social Security, SSDI, and SSI checks, which could change the lives of millions.

Since the pandemic, many seniors and low-income families have experienced delays or financial strain, and this increase is intended to help ease the burden. Let’s break down what this raise means, how it’s connected to the cost of living, and who qualifies for this benefit.

63.4% Social Security Hike

For anyone struggling to make ends meet with Social Security payments, this 63.4% increase couldn’t come at a better time. This new payment structure will impact approximately 72 million citizens across the country.

With inflation and the cost of living climbing, retirees on fixed incomes find it difficult to cover basic expenses. The raise will not only help them cope but might also provide some extra breathing room financially.

The payments are expected to roll out starting February 2024 via debit cards. If you’re a recipient of Social Security, SSDI, or SSI, this increase should show up in your check without any action needed from you.

However, it’s a good idea to check the official websites of the SSA (Social Security Administration) and IRS (Internal Revenue Service) to stay informed about any changes.

What is COLA?

The increase is largely driven by the Cost of Living Adjustment (COLA). Each year, COLA aims to ensure that Social Security benefits keep pace with inflation, meaning your benefits are adjusted according to how much the cost of living has risen.

For 2024, the COLA increase is 3.2%, slightly lower than the 8.7% seen in 2023. This lower rate reflects a smaller increase in inflation compared to the prior year.

To determine COLA, the government looks at the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). In September 2023, the CPI-W was at 302.257, and based on that number, the new COLA was set.

Although the adjustment is lower than the previous year, it will still positively impact millions who rely on federal assistance to manage their expenses.

Eligibility

Not everyone qualifies for these raised benefits, so who’s in line to receive it? The following groups will benefit from the new increase:

• Citizens 65 years or older
• Disabled individuals or surviving spouses
• Low-income earners
• Children of deceased workers
• Immigrants who have resided in the U.S. for over 20 years

A key eligibility requirement is that the individual must have paid Social Security taxes while employed. The IRS and SSA use tax returns to help determine who qualifies for these payments, so if you’ve been a taxpayer, you’re likely eligible.

Additionally, if you’re currently receiving SSI payments, you’ll see an increase too. The government plans to issue these payments through a more modern method—debit cards—to reduce delays and prevent theft.

What Can You Expect?

The 63.4% hike in Social Security, SSDI, and SSI checks is life-changing for many seniors and low-income families. With the increase, individuals will have more to cover necessities such as food, housing, and medical expenses.

The hike is also expected to ease financial stress for those caring for dependents or handling unexpected costs like healthcare bills.

Additionally, the change to a debit card payment system will make it easier and safer for recipients to access their funds. Many seniors faced paycheck delays during the pandemic, so this modernized system could ensure that payments are on time and accessible.

If you’re wondering about the details of your personal payment, you can use the “Get My Payment” tool on the IRS website, which will guide you through the steps to track your payments.

The second batch of debit cards will be issued starting in February 2024, so keep an eye on your mailbox or check the official SSA and IRS portals for any updates.

For millions of Americans, the 63.4% increase in Social Security, SSDI, and SSI checks couldn’t come at a better time. With inflation and the rising cost of living, this raise will offer much-needed relief.

Though the COLA adjustment is lower than last year, the total benefit hike is substantial and will significantly impact those on fixed incomes. Make sure you’re staying updated by regularly checking the SSA and IRS websites to track your payment schedule.

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