The 2024 Social Security COLA Increase has been announced at 3.20%.
Hey there! If you’re an agent in the Medicare market, then your clients are getting a pay raise….well their Social Security check is going up. We’ve got all the details on the 2024 adjustment right here, waiting for you. So, buckle up and get ready to dive into the world of increased benefits. Don’t miss out on this opportunity to stay ahead of the game!
Understanding COLA
Guess what? The Social Security Administration just spilled the beans for 2024 – the COLA (Cost-of-Living Adjustment) is set to spike at 3.2 percent! Hold up, though. This is quite the twist after last year’s jaw-dropping 8.7 percent boost.
But hey, let’s dive into how this COLA thing works. The U.S. Bureau of Labor Statistics uses a magic spell called the Consumer Price Index (CPI) to calculate it. This CPI thingamajig keeps an eye on the costs of goods and services. And guess what? It just spotted a 3.7 percent rise in inflation over the past year. Buckle up, folks!
So how does the Social Security increase in 2024 compare to previous years? Well, lets take a look:
Cost of Living Adjustments since 1975.
| July 1975 | 8.00% |
| July 1976 | 6.40% |
| July 1977 | 5.90% |
| July 1978 | 6.50% |
| July 1979 | 9.90% |
| July 1980 | 14.30% |
| July 1981 | 11.20% |
| July 1982 | 7.40% |
| January 1984 | 3.50% |
| January 1985 | 3.50% |
| January 1986 | 3.10% |
| January 1987 | 1.30% |
| January 1988 | 4.20% |
| January 1989 | 4.00% |
| January 1990 | 4.70% |
| January 1991 | 5.40% |
| January 1992 | 3.70% |
| January 1993 | 3.00% |
| January 1994 | 2.60% |
| January 1995 | 2.80% |
| January 1996 | 2.60% |
| January 1997 | 2.90% |
| January 1998 | 2.10% |
| January 1999 | 1.30% |
| January 2000 | 2.50% |
| January 2001 | 3.50% |
| January 2002 | 2.60% |
| January 2003 | 1.40% |
| January 2004 | 2.10% |
| January 2005 | 2.70% |
| January 2006 | 4.10% |
| January 2007 | 3.30% |
| January 2008 | 2.30% |
| January 2009 | 5.80% |
| January 2010 | 0.00% |
| January 2011 | 0.00% |
| January 2012 | 3.60% |
| January 2013 | 1.70% |
| January 2014 | 1.50% |
| January 2015 | 1.70% |
| January 2016 | 0.00% |
| January 2017 | 0.30% |
| January 2018 | 2.00% |
| January 2019 | 2.80% |
| January 2020 | 1.60% |
| January 2021 | 1.30% |
| January 2022 | 5.90% |
| January 2023 | 8.70% |
| January 2024 | 3.20% |
| January 2025 | ????? |
Are Your Clients Going To Feel The Pinch?
Last year, the usual correlation between an increase in COLA and higher Medicare Part B premiums didn’t hold true. Surprising, right? Now, here’s the catch – since Medicare premiums are directly deducted from Social Security benefit checks, your clients might not experience the same financial relief if Medicare Part B premiums rise. This could lead to relying more on savings than before.
But hey, there’s no need to panic! The hold harmless clause in federal law has got your clients covered. Basically, it guarantees that “no increase in Part B premiums can reduce a Social Security recipient’s monthly check below what it was in the previous year.” So, they’re protected even if this year’s COLA is lower than the last.
Hold on, there’s more to know! Medicare premiums are influenced by other factors too. Take 2024 as an example. Medicare is set to cover the Alzheimer’s treatment, Leqembi, which is expected to be one of the costliest treatments under the program. As experts estimate, adding Leqembi coverage could mean an extra $5 per month on Medicare premiums.
So, there you have it, all the nitty-gritty details. Make sure your clients are well-informed and stay ahead of the game!
When Is The 2024 Social Security COLA Increase Happening?
Great news! Starting January 2024, your client’s checks will reflect the annual increase. Now, let’s get into the nitty-gritty of when exactly they can expect those sweet dollars in their account.
If they were born between the 1st and the 10th of the month, they should mark their calendar for the second Wednesday. That’s when their benefits will arrive faster than a two-day shipping!
For those lucky individuals born from the 11th through the 20th, the third Wednesday of the month is their special day. So, get ready for those clients to celebrate mid-month with extra cash in their pocket!
Last but not least, if they happen to have a birthday between the 21st and the 31st, their benefits will shine on the fourth Wednesday of the month. It’s like an extended birthday present that keeps on giving!
Just to keep them in the loop, they will receive a letter in December with personalized benefit details. And of course, they can always find this information on the Social Security website.
Lets Wrap It Up
Need a copy of the 2024 Social Security Increase along with other important information? Be sure to download your copy of the Social Security Fact Sheet.*