LADY LAKE, FL, Sep 18 – Calls have already started coming in regarding the cost-of-living increase or COLA Increase in 2024.
When do I get the increase?
Some news articles are already making announcements of the current CPI, which is the CPI-U. This is the Consumer Price Index for All Urban Consumers, (U.S. city average). The CPI-U is used in federal legislation, such as the indexation of federal income tax brackets. However, the COLA increase for Social Security is based on the CPI-W. Consumer Price Index for Urban Wage Earners and Clerical Workers.
CPI-U Vs CPI-W
The CPI-U is currently 3.2%, whereas the CPI-W at this point is 2.6%. This is based on comparing July 2022 to July 2023. The COLA is based on the average growth of inflation between July, August, and September of the prior year. This means the current CPI-W of 2.6% can go up or down when the average of those three months is determined. The COLA is announced around the middle of October and will be applied to your December 2023 Social Security payment that you will receive in January 2024. (There is not always a cost-of-living increase as was the case in 2010, 2011 and 2016.)
Predictions
Due to the declining inflation rate most economists are predicting a 2024 COLA increase between 2.7% and 3%. Whatever the COLA increase ends up being, you also need to take the cost of Medicare Part B into consideration. The Medicare Trustees forecast Medicare Part B will increase in 2024, but by how much has not yet been determined.
When will it be announced?
The COLA increase will be announced around mid October, or October 13th, 2023, specifically, and the cost of Medicare Part B toward the middle of November 2023. This means it will be a couple more months before the actual COLA increase is known, and almost another month to find out how much Medicare Part B’s cost will increase. You will receive the full COLA, but it will be reduced by any increase to Medicare Part B.
AMAC Foundation Social Security Advisory Service [email protected] or call: (888)750-2622
