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The Social Security Administration announced that the annual cost of living adjustment for Social Security will be 3.2% in 2024. That will add about $50 to the average recipients' benefits, starting on December 29, 2023, bringing them from $1,848 per month to $1,907.
"Social Security and SSI benefits will increase in 2024, and this will help millions of people keep up with expenses," said Kilolo Kijakazi, acting commissioner of Social Security.
The cost of living adjustment is based on the average Consumer Price Index for Urban Wage Earners and Clerical Workers in July, August, and September.
According to data released by the Bureau of Labor Statistics, the CPI-W increased by 2.6% in July, 3.4% in August, and 3.6% in September.
While the increase is a sharp decline from the 8.7% increase in 2023, it is still well above the average of 2.6%.
"Retirees can rest a little easier at night knowing they will soon receive an increase in their Social Security checks to help them keep up with rising prices," said Jo Ann Jenkins, AARP chief executive. "We know older Americans are still feeling the sting when they buy groceries and gas, making every dollar important."