Some 71 million Americans will get a boost in Social Security benefits in the coming year.

Social Security and Supplemental Security Income, or SSI, will increase by 3.2% in 2024, the Social Security Administration announced Thursday. The cost-of-living adjustment, or COLA, will begin with benefits payable to some 66 million Social Security beneficiaries in January 2024, based on the recipient’s birthday. The 7.5 million SSI recipients will see increased payments starting Dec. 29, 2023.

The increase, far below last year’s 8.7% boost, was determined by Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, data for July, August and September. Inflation for those three months is added together and average then compared to the third quarter average from one year ago. The percentage difference between the two is the amount of the COLA.

The 3.2% COLA will raise the average monthly retirement benefit of $1,790 by about $57.

Earning changes

Earnings limits for Social Security recipients have changed as well.

The maximum amount of earnings subject to the Social Security tax – the taxable maximum – will increase to $168,600.

The earnings limit for workers who are younger than “full” retirement age will increase to $22,320. After that, $1 is deducted from benefits for each $2 earned over $22,320.

The earnings limit for people reaching their “full” retirement age in 2024 will increase to $59,520. After that, $1 is deducted from benefits for each $3 earned over $59,520 until the month the worker turns “full” retirement age.

There is no limit on earnings for workers who are “full” retirement age or older for the entire year.

You can see more on what’s considered full retirement ages here.