Historic Increase in Social Security Checks – Date of the Increase Announced

If you’re relying on Social Security benefits, you might be in for a significant raise next year. While the exact increase won’t be confirmed until October, projections are hinting at a potential historic rise in Social Security checks. The cost of living adjustment (COLA), determined by the Bureau of Labor Statistics, is the key factor in these changes. However, despite this potential boost, many retirees are concerned that it may not be enough to offset rising living costs.

October’s Key

Each year, the Bureau of Labor Statistics announces the COLA percentage, which directly influences how much Social Security checks will increase. While the final figures will only be unveiled in October, experts estimate that Social Security recipients could see increases ranging between 2.7% and 3.2%. This would mark the fourth consecutive year of increases at or above 2.7%, a streak not seen in over three decades.

However, this news comes with mixed feelings. For many retirees, rising costs, especially for essentials like food, continue to eat away at their benefits. The Senior Citizens League points out that even with these potential increases, inflationary pressures may still leave many struggling. For example, food prices have surged since 2020, with items like lettuce, sugar, and eggs seeing steep price hikes. As a result, food insecurity has become a growing concern among retirees, with one-third of them having sought assistance from food stamps or pantries in the last year.

Importance of COLA

COLA plays a crucial role in maintaining the value of Social Security benefits. It ensures that beneficiaries can keep up with inflation, preserving their purchasing power. For those who haven’t yet claimed Social Security benefits, COLA also helps maintain the future payout’s purchasing power by adjusting the primary insurance amount (PIA) annually. This adjustment reflects inflation rather than the nominal value at the time of calculation.

Delaying Social Security claims beyond your full retirement age can further enhance your benefits through delayed retirement credits (DRCs). The cumulative effect of these COLAs on your PIA can lead to significantly higher monthly payouts, making it crucial to know how COLAs impact your benefits and when to apply for Social Security.

Expected Increase

Based on current projections, Social Security checks could see an increase of between 2.6% and 3.2%, depending on the final COLA percentage. Here’s how these increases could play out across different benefit programs:

Program	Average Check	2.6% Increase	3.2% Increase
Retirement
On average	$1,900	$1,949	$1,961
Age 62	$2,710	$2,780	$2,797
Age 67	$3,822	$3,921	$3,944
Age 70	$4,873	$5,000	$5,029
Survivor
On average	$1,505	$1,544	$1,553
Individual	$1,773	$1,819	$1,830
2 Children	$3,653	$3,748	$3,770
Disability
On average	$1,537	$1,577	$1,586
Blind recipients	$2,590	$2,657	$2,673
Maximum payment	$3,822	$3,921	$3,944
SSI
On average	$698	$716	$720
Individuals	$943	$968	$973
Couples	$1,415	$1,452	$1,460
Essential person	$472	$484	$487

These estimates highlight the potential changes across various programs. For retirees, especially those with lower benefits, even a small percentage increase can make a big difference in their monthly budget.

The anticipated COLA increase could be historic, but the true impact will depend on how it stacks up against rising living costs. Beneficiaries should keep an eye out for the official announcement in October to know the exact increase they’ll receive.

FAQs