The Social Security Administration (SSA) announced a modest 3.2% increase to Social Security and Supplemental Security Income (SSI) benefits for 2024 on October 12.

The Cost of Living Adjustment (COLA) will impact more than 71 million Americans and is calculated annually based on the Consumer Price Index. The increase falls short of the 8.7% and 5.9% increases announced for 2023 and 2022, respectively—the largest increases since the early 1980s.

According to the SSA, adjusted benefits payments under the 2024 COLA will begin in January for more than 66 million Social Security beneficiaries and in late December for approximately 7.5 million people receiving SSI. In addition, the maximum amount of earnings subject to Social Security tax will increase in January from $160,200 to $168,600.

The COLA impacts many older adult households who depend on Social Security retirement benefits. The COLA also determines HUD’s prescribed increase to certain program funding, including the Service Coordination program annual grant increases.