In the year 1973, the Cost of Living Adjustments was enacted which was to keep in pace with inflation which further led to the providing of the Social Security and the Supplemental Security Income benefits. The citizens of the United States are getting the increased Social Security benefits due to the change in COLA benefits. The COLA Estimate Update July 2024 has been 3.2% which was decided by the end of the year 2023. The Social Security payments have taken a hike after the change in COLA and the Social Security and COLA move side by side. Now to know more facts on the COLA Changes, you must have a look at this page.
COLA Estimate Update July 2024
The Social Security Administration being the Federal Government of the United States is taking all the measures to continuously help the citizens who have low income and fall under the poverty level. The Social Security benefits are released which is the retirement benefit given to the citizens starting from 62 years of age and the retirement benefits will be based on your earning history, your age and the retirement age. Now the main effect in the benefits is as per the Cost Of Living Adjustments. The COLA is determined based on the increase in the Consumer Price Index for the wage earners. For the year 2024, the rate has been determined to be 3.2% and this rate has been based on the CPI-W for the third quarter.
After the new rate of COLA was introduced, the benefits amount has been increased by this percentage and the citizens have started getting the increased benefits. With the new COLA update for the month of July 2024, the taxable income has become $168600 and the new applicable rate for the Social Security benefits has been $2710 if you are claiming your payments at the age of 62 years. With the increased amount, the citizens will be able to get an extra benefit which can be used for multiple purposes. With the new COLA, the recipients will get an increased benefit in the month of July 2024 which will be $4873 if you retire at the age of 70 years. The benefit of Social Security will be transferred in the bank accounts of the beneficiaries and the payment will be given on the dates which have been mentioned in the Social Security Schedule.
SSA’s COLA Update For July 2024
The Cost of Living Adjustment is based on the Consumer Price Index and the rate which will be implemented for the whole 2024 is 3.2%. The beneficiaries will be provided with the benefits with this increased rate and the Social Security changes for the month of July 2024 will be implemented.
| Post Title | COLA Estimate Update July 2024 |
| Organization Name | Social Security Administration |
| Benefits Provided | Social SecuritySupplemental Security IncomeSocial Security Disability Insurance |
| Changes Implemented due to | Cost Of Living Adjustment |
| Change in COLA due to | Consumer Price Index |
| COLA Rate | 3.2% |
| Social Security Benefits | Minimum $2710 per month |
| Benefits Given At Age | 62 years |
| Benefit Mode | Online |
| Post type | Finance |
| Website | ssa.gov |
COLA and Social Security Update For July 2024
- The COLA benefits and the Social Security benefits move side by side which states that any change in COLA will automatically change Social Security.
- Since the rate of COLA for the year 2024 is 3.2%, this way the Social Security benefits have been increased by 3.2% from the year 2023.
- The Social Security benefits will be the maximum if you are claiming the payments at 70 years of retirement age.
- COLA has been affected due to the CPI-W and the maximum taxable income for the year 2024 is $168600.
- The Consumer Price Index will be noted for the month of July 2024 by the end and after that the SSA will be able to predict the new rate for the year 2025.
COLA and Disability Benefits 2024
Just as COLA and Social Security benefits go hand in hand, the same way Disability benefits are also affected. The citizens are given the Disability benefits for the amount of $943 per month if they are just the single taxpayers and $1415 per month if they are jointly filing the taxes. The benefits have been changed due to the increase in COLA which was implemented from 1 January 2024.
2024 Social Security Changes
| Particulars | 2023 | 2024 |
| Tax rate for employee | 7.65% | 7.65% |
| Tax rate for self employed | 15.30% | 15.30% |
| Taxable earnings | $160200 | $168600 |
| Social Security benefits at FRA | $3627 per month | $3822 per month |
| SSI payment for individual | $914 per month | $943 per month |
| SSI payment for couples | $1371 per month | $1415 per month |
| SSI student exclusion annually | $8950 | $9230 |
| Average monthly Social Security benefits for retired ones | $1848 | $1907 |
| Average monthly Social Security for aged ones | $2939 | $3033 |
| Average monthly Social Security benefits for widowed mother and 2 children | $3540 | $3654 |
COLA Payment Dates 2024
The payment dates for the COLA are the exact dates on which the beneficiaries will be getting their Social Security payments for the month of July 2024.
| Benefit name | Payment day | COLA Payment Date 2024 |
| SSI benefit | 1st date | 1 July 2024 |
| Social Security if born b/w 1st and 10th | 2nd Wednesday | 10 July 2024 |
| Social Security if born b/w 11th and 20th | 3rd Wednesday | 17 July 2024 |
| Social Security if born b/w 21st and 31st | 4th Wednesday | 24 July 2024 |
FAQs On COLA Estimate Update July 2024
The COLA benefit for the year 2024 is 3.2%.
The change in COLA is due to the Consumer Price Index.
The taxable income of Social Security for the year 2024 has become $168600.
John Wick is a Media and Finance editor, passionate about writing and editing content related to finance and taxes. He has achieved dual degree in Mass Media and Finance From one of the top universities in the World. He is keen to learn new things and changes which take place in the world of Finance and stocks.