The Social Security Administration announces the cost of living adjustment (COLA) every year to protect the Social Security beneficiaries from inflation and changes to the cost of living. COLA is basically the pay raise for those who receive Social Security benefits. Regardless of the benefit you receive, the increase applies to everyone.
How much is COLA?
COLA for the 2024 calendar year is 5.9 percent. Approximately 8 million SSI beneficiaries will get the increased amounts starting from December 30, 2023. More than 64 million Social Security beneficiaries will get their benefits adjusted by 5.9 percent beginning in January 2024.
While most people are interested in the increase, COLA covers more than just a set percentage increase to the benefits.
Whether you’re a military retiree, veteran, federal employee, or retired from the federal government, you will receive a 5.9 percent increase.
COLA adjustments 2024
The maximum taxable amount of earnings subject to the Social Security tax through payroll is increased to $147,000, and the earnings limit for workers younger than full retirement age will be increased to $19,560. Social Security Administration will deduct half of what’s earned over this amount.
Additionally, the same as any other year, there isn’t an earnings limit for workers over the retirement age for the entire calendar year.