Social Security Benefit Adjustments for 2024 Likely to be ‘Above Average’ but Less than 2023 Increase

The Social Security cost of living adjustment (COLA) is likely to drop dramatically in 2024 from its 2023 adjustment, according to a non-partisan advocacy group.  

The Senior Citizens League estimates that the COLA for 2024 will be around the 3% range, dropping more than half from this year’s increase of 8.7%. 

The estimate is based on inflation data from July. As inflation continues to cool, the odds of significant Social Security benefit increases drop.

The COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers for the months of July, August, and September. In July, that index only rose 2.6% year over year. 

"We are returning to reality," Mary Johnson, a policy analyst at the Senior Citizens League told USA Today. "However, the 3% is still above average."

The 2023 COLA was the highest in over 40 years. In 1980, the adjustment increased 11.2%.

According to the Senior Citizens League, a COLA of 3% would increase an average monthly benefit of $1,789 by $53.70.

The 2024 COLA adjustments will be officially announced by the Social Security Administration in October, and recipients should see the adjustment reflect in their checks in January.