According to the Social Security Administration, Social Security and Supplemental Security Income (SSI) benefits for more than 71 million Americans will increase by 3.2% in 2024. This increase is lower than the 8.7% increase beneficiaries received in 2023. The cost-of-living adjustment (COLA) is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year a COLA was determined to the third quarter of the current year. The COLA helps to ensure that the purchasing power of Social Security and SSI benefits is not eroded by inflation. The increase will result in an estimated Social Security retirement benefit increase of $50 per month, on average. Most Social Security beneficiaries will see the increase in their monthly checks starting in January, while SSI beneficiaries will see the increase in their December checks.