Social Security announced today that its cost-of-living adjustment (COLA) for 2024 would be 3.2 percent, far less than this year’s 8.7 percent COLA. The ceiling on earnings subject to payroll taxes will rise to $168,600 from $160,200 this year.
The agency bases the COLA on consumer price inflation for the year ending September 30. The rate of inflation is sharply lower this year than last, explaining the reduced COLA.
The COLA also affects other Social Security benefit formulas. Here is the agency’s fact sheet. Apologies for the clunky appearance. Some of the terms are obscure. If a visit to your favorite search engine does not explain something clearly, let me know and I’ll respond.