December 2023 Brings an Early COLA Boost for SSI Beneficiaries
For those receiving Supplemental Security Income (SSI), there’s significant news regarding the cost of living adjustment (COLA) for the upcoming year. In response to the current inflation rates, the Social Security Administration (SSA) has announced a 3.2% increase in COLA for 2024. However, SSI beneficiaries will see this adjustment a bit earlier, in December 2023, rather than January 2024. This article provides insights into why and how this change affects you.
In the first week of December, check your My Social Security account for an update regarding your new benefit amount. If you haven’t created an account (with the deadline being Nov. 14), expect a mailed letter detailing the increase.
Detailing the Cost of Living Adjustment
This early increase sets SSI recipients apart from other Social Security beneficiaries, who will see their adjustments starting January 2024. Below, we’ll delve into the specifics of this early increase for SSI recipients, including the expected date of the first payment. Additionally, we’ll touch on the upcoming changes to Medicare premiums and deductibles for 2024, as well as the general Social Security and Social Security Disability Insurance payment schedules.
Understanding the Early SSI COLA Increase
The SSA operates on a precise schedule for distributing monthly payments. Typically, SSI payments are issued on the first of every month. However, there are exceptions, particularly when the first day of the month coincides with a holiday or weekend.
For January 2024, the first day of the month is a holiday. In such instances, the SSA issues payments on the preceding business day – this time, it falls on a Friday. Therefore, instead of receiving your January 2024 payment in the new year, it will arrive in late December 2023.
Putting it All Together
SSI recipients can expect their adjusted payment on December 29, reflecting the COLA increase. Since the scheduled January payment falls on a holiday, the SSA is issuing this first 2024 payment ahead of time.
Individuals receiving both SSI and regular Social Security benefits will receive their increased SSI payment in December. However, the increase in their Social Security benefits will not start until January 3, which is a Wednesday.
This early COLA adjustment for SSI recipients is a response to current economic conditions and follows specific scheduling protocols set by the SSA. For those looking to understand the maximum possible Social Security benefits or seeking more information on Social Security schedules, stay tuned for further updates.
Remember, staying informed about these changes is crucial for effective financial planning, especially for those reliant on these vital benefits.
If you’re in need of legal assistance regarding your social security application, then click here or call (833) 613-0618 for a free consultation with a qualified social security attorney.