Social Security increase: When will COLA be announced?

Social Security recipients only have a little while to wait until they learn what their cost-of-living-adjustment increase will be next year.

The Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, the index that determines COLA, uses data from July, August, and September to determine next year’s increase. Barring any unforeseen delays, the COLA announcement is expected to be released Oct. 12, according to the nonpartisan advocacy group The Senior Citizens League.

COLA is determined by averaging inflation for the third quarter of the year, then comparing it to the same period average from one year ago. The percentage difference between the two is the amount of the COLA, which will be payable for the check received in January 2024.

Using July data, TSCL estimates the 2024 COLA will likely be around 3%, raising the average monthly benefit if $1,789 by $53.70.

If it holds, the 3% COLA would be significantly lower than the 8.7% COLA increase Social Security recipients received in 2023 and 2021′s 5.9%. COLA for 2020 and 2019 was below 2% at 1.3% and 1.6%, respectively.