In 2024, Social Security Disability Insurance (SSDI) benefits are set to increase due to a rise in the Cost-Of-Living Adjustment (COLA). This change is important for individuals receiving SSDI as it impacts their monthly payments. This article will explain the new SSDI increase, detail how it affects payments, and provide insight into COLA and its role in these adjustments.
SSDI Increase 2024
Social Security Disability Insurance (SSDI) supports individuals with disabilities who have paid enough Social Security taxes on their earnings. Managed by the Social Security Administration (SSA), SSDI helps people who are unable to work due to their disabilities.
In 2024, SSDI payments will see a boost due to a 3.2% increase in COLA. This adjustment helps SSDI benefits keep up with the rising cost of living in the United States. As a result, SSDI monthly payments will rise to reflect this change.
Changes and Expected Increase in SSDI Payments
With the new COLA increase, the maximum SSDI benefit amount is set to be $1,537 per month. This amount is an average and can vary depending on an individual’s “insured” status and other factors. The SSA calculates the exact benefit amount based on these variables.
Beneficiaries will receive a letter from SSA in December 2023, informing them of the new benefit amount for 2024. It’s worth noting that new beneficiaries might see a higher increase compared to those who have been receiving benefits for a longer time.
The SSA’s fact sheet on COLA 2024 includes details on payment rates, tax rates, and thresholds for various Social Security benefits. Some beneficiaries may start seeing these increased payments as early as December 29, 2023. Approximately 71 million citizens are expected to benefit from this adjustment in 2024.
SSDI Payment Increase Table
Here’s a breakdown of the expected SSDI payments for 2024 compared to 2023:
| Benefit Category | 2023 Amount | 2024 Amount | Increase |
|---|---|---|---|
| Disabled Worker | $1,489 | $1,537 | $48 |
| Disabled Widow(er) | $897 | $926 | $29 |
| Aged Widow(er) | $1,720 | $1,775 | $55 |
| Spouse of Retired Worker | $885 | $913 | $28 |
| Retired Worker | $1,847 | $1,906 | $59 |
What is COLA?
Cost-of-living adjustments (COLA) are changes in Social Security benefits to keep up with inflation. On October 12, 2023, the SSA announced a 3.2% COLA increase for 2024. This adjustment ensures that the purchasing power of Social Security benefits remains stable despite inflation.
COLA adjustments are announced each October and apply to the following year. For instance, if a Primary Insurance Amount (PIA) is $1,924.50, a 3.2% COLA will increase it to $1,986.
In 2022, the COLA was 5.9%, raising benefits to $1,358 per month for disabled workers. In 2023, the COLA was 8.7%, increasing benefits to $1,483 per month.
Conclusion
The SSDI increase for 2024 reflects a 3.2% adjustment in COLA, designed to help maintain the value of benefits amid inflation. Beneficiaries will see a rise in their monthly payments, with the maximum amount reaching $1,537. The SSA will provide updated payment amounts and further details in December 2023. For those relying on SSDI, this increase is a crucial adjustment to support their financial stability.
FAQ’s
What is the new SSDI payment amount for 2024?
For 2024, the maximum SSDI payment will be $1,537 per month. This increase is due to a 3.2% adjustment in the Cost-Of-Living Adjustment (COLA) to account for rising living costs.
When will beneficiaries be informed about the new SSDI payment rates?
Beneficiaries will receive a letter from the Social Security Administration (SSA) in December 2023, detailing the new SSDI payment amounts for 2024. This letter will provide updated information based on their individual situations.
How is the Cost-Of-Living Adjustment (COLA) calculated?
COLA is calculated based on changes in the cost of living, measured by inflation. The Social Security Administration (SSA) reviews inflation data each year and adjusts benefits accordingly. For 2024, the COLA is set at 3.2%.