The Cost of Living Adjustment (COLA) for 2024 brings a significant increase in Social Security payments starting in November, designed to help recipients keep pace with inflation and rising living costs.
This automatic adjustment is part of the government’s annual effort to support retirees and others dependent on Social Security by boosting their monthly benefits.
How the COLA Impacts Social Security Payments
COLA adjusts Social Security benefits yearly, reflecting changes in inflation measured by the Consumer Price Index. In 2024, COLA has led to a notable increase, enabling beneficiaries to better afford essentials such as housing, healthcare, and other critical needs.
November 2024 Payment Schedule with COLA
The increase will be fully implemented in November 2024, following this schedule:
- November 1: SSI and retirees who began receiving benefits before May 1997.
- November 13: Retirees born between the 1st and 10th of the month.
- November 20: Retirees born between the 11th and 20th.
- November 27: Retirees born between the 21st and 31st.
- November 29: Early SSI payment for December.
Strategies to Maximize Social Security Benefits
Maximizing Social Security benefits is essential for many retirees who depend on this income. Here are three primary strategies:
- Delay Retirement: Waiting until age 70 instead of the earliest eligible age of 62 allows recipients to receive the maximum possible benefit. Each year delayed after Full Retirement Age (FRA) (66 or 67) boosts monthly payments by 8%.
- Work for 35 Years: Social Security calculates benefits based on the highest 35 years of earnings, so working a full 35 years can optimize benefit amounts, especially if those years include higher earnings.
- Increase Earnings: Higher annual earnings generally result in higher Social Security benefits. As income increases, so does the average indexed monthly earnings, the figure used to calculate benefits.
These strategies, combined with the annual COLA adjustment, help retirees and other beneficiaries maintain financial stability amid rising living costs.
The COLA increase for November 2024 is a vital adjustment that will help millions of Americans keep up with inflation.
Beneficiaries can use strategies like delaying retirement, working for 35 years, and boosting annual earnings to maximize their Social Security payments further, helping them stay financially secure.
