For individuals who have been receiving Social Security Disability Insurance (SSDI) benefits since before May 1997, a significant delay in receiving your 2024 COLA (Cost-of-Living Adjustment) increase may impact your finances. This delay means that you will not see the new disability payment until January 2024, despite the adjustments starting earlier in the year for other recipients. Here’s everything you need to know about this delay and how it may affect your upcoming payments.
Why is There a Delay for Pre-May 1997 Disability Recipients?
If you began receiving SSDI benefits before May 1997, your payments are part of a distinct group that requires a different process for adjustments, particularly in how COLA increases are calculated. This delay is due to the structure of your payment and the way benefits were calculated under earlier Social Security rules.
Individuals who were on the Social Security Disability rolls prior to May 1997 typically have “frozen” benefits, which can delay automatic adjustments like COLA increases. As a result, even though Social Security as a whole may begin issuing the adjusted payments to many recipients earlier in the year, those who fall into this category must wait until January 2024 to receive the updated amount, including the newly adjusted COLA increase.
When Will Pre-May 1997 Disability Recipients Get Their New Payments?
For those receiving SSDI benefits from before May 1997, the COLA adjustment will be reflected in the January 2024 payment. While the general COLA adjustment typically starts with the first payment of the year, these recipients will see their updated payment a few months later, due to the processing time and calculation methods specific to their benefits.
This means that if you are one of the individuals impacted by this delay, you should not expect your increased disability check in the months leading up to January. Instead, you will see the revised amount starting with your January 2024 payment, which includes the adjusted COLA amount based on the current inflation rate.
How Much Will the COLA Increase Be for 2024?
For most Social Security recipients, including SSDI beneficiaries, the 2024 COLA increase has been set at 3.2%. This means that individuals will see a corresponding increase in their monthly payments to help keep pace with rising living costs.
For those who are impacted by the delay, the COLA increase for 2024 will be included in the January payment. Depending on the exact amount of your monthly SSDI benefit, this could represent an increase of around $50 or more per month. While the delay can be frustrating, the adjustment will help ensure that your payment reflects the increase in the cost of living.
What Should You Do in the Meantime?
If you’re a pre-May 1997 SSDI recipient and are facing this delay, there are several steps you can take to prepare for the January 2024 payment:
- Budgeting: Since you won’t receive the adjusted payment until January, consider adjusting your budget for the remaining months of 2023. Be mindful of your expenses to avoid any financial strain during this period.
- Seek Assistance: If the delay in receiving the COLA increase puts you in a difficult financial situation, consider reaching out to local social services or support organizations that may be able to help with temporary assistance during this period.
- Monitor Your Payment: Once January 2024 arrives, be sure to check your Social Security account or payment statement to confirm the new amount of your disability payment. The COLA increase should be reflected in this statement, and you will start receiving the adjusted amount from that point forward.
Why is This Delay Important to Understand?
The delay in COLA adjustments for pre-May 1997 SSDI recipients underscores how complex Social Security benefits can be for long-term beneficiaries. While most recipients will receive their updated payments earlier in the year, understanding the timing of the COLA adjustment is crucial for financial planning. By knowing that the COLA increase will not appear in your payments until January 2024, you can plan accordingly and ensure that you are not caught off guard by any unexpected delays.
Final Thoughts
If your Social Security Disability benefits began before May 1997, you will need to wait until January 2024 to receive the new disability check with the COLA increase. Although it may be inconvenient, this delay is standard for those with older Social Security records, and the increase will be reflected in your January payment. Be sure to adjust your budget in the meantime and check your payment status for updates as 2024 progresses.
For more details on Social Security Disability payments and the COLA increase, visit the Social Security Administration.
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