The 2024 Cost of Living Adjustment (COLA) brings a 3.2% increase to Social Security, Social Security Disability Insurance (SSDI), and Supplemental Security Income (SSI) benefits.
For many Americans, this adjustment means higher monthly payments, potentially amounting to an extra $652 per month under specific circumstances.
Let’s break down how this increase works, who it applies to, and how you can maximize your benefits.
What’s Changing in 2024?
The COLA increase of 3.2% is designed to counteract inflation and rising living costs. Here’s how the changes affect monthly benefits:
| Benefit Type | Previous Average Payment | Estimated Increase | New Average Payment |
|---|---|---|---|
| Social Security | $1,827 | +$59 | $1,886 |
| SSDI (average) | $1,483 | +$55–$60 | $1,538 |
| SSI (individuals) | $914 | +$56 | $970 |
| SSI (couples) | $1,371 | +$44 | $1,415 |
In addition, state supplements and eligibility for multiple programs may significantly boost monthly payments, bringing the total increase closer to $652 for some beneficiaries.
Eligibility for Increased Benefits
Social Security Disability Insurance (SSDI)
- Eligibility: Based on work history and disability severity.
- Income Test: Monthly earnings below the Substantial Gainful Activity (SGA) threshold:
- Non-Blind Individuals: $1,470 per month.
- Blind Individuals: $2,460 per month.
Supplemental Security Income (SSI)
- Eligibility: Based on financial need, limited income, and resources.
- Federal Maximum Payments:
- Individuals: $914 per month.
- Couples: $1,371 per month.
- State Supplements: Many states offer extra SSI payments. For example:
- California: Up to $130 extra.
- New York: Up to $87 extra.
Maximizing Your Benefits
1. Understand State Supplements
Check if your state offers additional payments on top of federal SSI benefits. States like California, Alaska, and New York provide supplements that could raise your monthly total.
2. Work Within Earnings Limits (SSDI)
SSDI recipients can earn up to the SGA limit ($1,470 for non-blind individuals) without losing benefits. Part-time work within this threshold can increase overall monthly income.
3. Claim Retroactive Payments
If you recently became eligible for SSDI or SSI, you might receive a lump sum for months you were eligible but not yet receiving payments. This could significantly boost your income in 2024.
4. Leverage Other Assistance Programs
Combine your Social Security benefits with programs like:
- Supplemental Nutrition Assistance Program (SNAP) for groceries.
- Low-Income Home Energy Assistance Program (LIHEAP) for utility costs.
- Medicare or Medicaid for healthcare needs.
5. Track Annual Adjustments
Keep an eye on annual COLA updates. Benefits are recalculated yearly to keep up with inflation. Access your benefits statement via the Social Security Administration (SSA) website to confirm your new monthly amount.
How Some May Receive Up to $652 More
Combining federal SSI, SSDI, and state supplements can create substantial increases:
- Example 1:
A disabled individual in California receives:- $970 (federal SSI after COLA) + $130 (state supplement) = $1,100 monthly.
- Example 2:
A dual SSDI and SSI recipient working part-time earns:- $1,538 (SSDI after COLA) + $100 (part-time earnings within SGA) = $1,638 total monthly income.
In some cases, these combined payments can result in up to $652 more per month than previous years.
How to Ensure You Receive the Correct Benefits
1. Review Your Social Security Statement
Log into your account on the SSA website to verify payment updates and eligibility.
2. Update Personal Information
Ensure your address, banking details, and income are up to date with the SSA. Delays or errors can affect payments.
3. Appeal Errors
If you believe your benefits are incorrect, you can file an appeal:
- Step 1: Request reconsideration.
- Step 2: Attend a hearing before an administrative law judge if needed.
Important Dates
- COLA Increase Effective: January 2024.
- SSI Payments Begin with COLA: January 1, 2024.
- SSDI Payments Reflect COLA: Distributed throughout January based on your payment schedule.
Additional Resources
- Social Security Administration Website: www.ssa.gov
- State SSI Supplements: Contact your state’s Social Security office for details.
- Work Incentive Programs: SSA’s “Ticket to Work” program helps SSDI recipients transition into employment while maintaining benefits.
With these increases, 2024 brings much-needed financial relief to millions of Americans. Staying proactive, understanding eligibility, and exploring additional assistance programs can help you maximize your benefits and achieve greater financial stability.
