Social Security Benefits to Increase 3.2 Percent in 2024

The logo of the Social Security Administration is seen outside a Social Security building in Burbank, Calif. on Nov. 5, 2020. Valerie Macon/AFP via Getty Images

Every year about this time, the Social Security Administration (SSA) announces the new cost-of-living adjustment (COLA) for those receiving Social Security benefits. Seniors everywhere look forward to the announcement, wondering if it will be enough to offset the current and projected inflation rate.

The announcement has been made. The Social Security benefits increase for 2024 is set at 3.2 percent. The increase is much smaller than it was for 2023, but it is because the economy is showing signs of being more stable.

The 2023 COLA Raise

When the new Social Security benefits COLA 2023 is to be determined, it is based on the inflation rate during the third quarter—July through September. The SSA says the inflation rate comes from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index is recalculated each month.