Social Security Is Increasing: Here's How Much More You'll Get If You Qualify

People who receive Social Security benefits will see another cost of living boost of 3.2% to their payments in 2024, bringing the average monthly payment to $1,907 from $1,848 this year.

The adjustment is designed to help retirees deal with higher inflation in things like energy costs and groceries. 

Although the boost will bring average monthly payments higher, the increase is much lighter than it was in 2023. This year, the average monthly payment was raised by 8.7% in order to help retired people handle the highest inflation the U.S. had seen in decades. 

See Also: Inflation Heats Up, But Economists Stand Firm On Fed Interest Rates: Dollar Gears Up To Break 6-Day Losing Streak

While some politicians talk about cutting social spending, the Social Security program remains highly favorable among voters. The program is expected to face a funding shortfall at some point in the next decade, requiring policymakers to figure out how to pay for the program without fueling more inflation. 

The SPDR S&P 500 ETF Trust (NYSEARCA: SPY) dipped Thursday morning after the Consumer Price Index (CPI) reading came in slightly higher than expected, signaling that inflation remains sticky. The cost of living adjustment (COLA) could also benefit brokerages that offer retirement plans such as Charles Schwab Corporation (NYSE: SCHW) and JPMorgan Chase & Co (NYSE: JPM) as monthly contributions increase. 

When Will The Raise Kick In? The boost is expected to take effect in January 2024, while recipients of Supplemental Security Income (SSI) benefits should see their new payments take effect in December, according to CNBC.

The total amount of the increase in Social Security payments will depend on the size of recipients' Medicare Part B premium.

In general, beneficiaries have their Medicare Part B premium taken out of their Social Security checks. This year, those premiums are expected to go up by about $10 a month on average. This means the total increase from the cost of living boost will be about $40 a month after the premium is taken out. 

Read Next: Inflation Rises 3.7% Year-Over-Year In September, Reigniting Fed Rate Hike Speculations

Photo: Shutterstock