Social Security Increase: What You Need to Know in 2024

News: The Social Security Administration (SSA) is scheduled to boost Social Security Benefits in 2024. These benefits encompass Supplemental Security Income, Medicare, Retirement, Disability, and Survivors, offering vital assistance to retirees, disabled individuals, and those experiencing financial difficulties. The augmentation of benefits is calculated through the Cost of Living Adjustment (COLA) mechanism, guaranteeing that these benefits remain in line with the increasing expenses of everyday life.

Increase in Benefits

As per the SSA, more than 71 million individuals are slated to experience a rise in their Social Security and SSI benefits in 2024. The declaration regarding this increase was made on October 12, 2023. Consequently, the average benefits disbursed by the SSA are expected to elevate by an average of over $50 per month for each beneficiary. It’s crucial to highlight that this augmentation will only be implemented starting January 2024.

Enjoying Increased Payments

Commencing January 2024, over 66 million individuals receiving Social Security Benefits will witness a boost in their monthly payments. The specific increment for each recipient can be accessed within their personal my Social Security Account. Additionally, individuals can review the announcement concerning the 2024 COLA by accessing their my Social Security Account or by visiting the official website of the Social Security Administration.

Relief for Beneficiaries

The heightened Social Security Benefits will offer crucial relief to existing beneficiaries, enabling them to address essential needs and afford various necessary expenses more comfortably. This augmented income is poised to significantly improve the lives of millions of citizens contending with financial challenges.

Other Changes and Adjustments

Apart from the rise in benefits, adjustments will affect the income subject to social security tax. The maximum taxable earnings are set to elevate to $168,600 in 2024, compared to $160,200 in 2023. This modification aims to ensure that individuals with higher incomes proportionately contribute to the Social Security system. Importantly, there exists no cap on the maximum taxable earnings related to Medicare.

Notifications and Access to Information

Beneficiaries can anticipate receiving notifications detailing their augmented monthly benefits and pertinent information commencing in December 2023. However, individuals seeking to ascertain the specific amount they’ll receive due to the 2024 COLA increase can efficiently access this information through their my Social Security Account for a faster and more convenient overview.

COLA Adjustment and Other Changes

The COLA adjustment is directly linked to the rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), data provided by the Department of Labor’s Bureau of Labor Statistics. In 2024, all beneficiaries are slated to receive a 3.2% increase in their benefits.

Alongside the benefit increase, there are other notable changes. The Quarter of Coverage will elevate from $1,640 to $1,730 in 2024. Furthermore, the tax-exempt amounts on retirement income for individuals below the full retirement age will be set at $22,320 per year, an increase from the previous $21,240.

Average Social Security Benefits in January 2024

• Aged Couple (both receiving benefits): $3,033 per month (up from $2,939)
• Retired Workers: $1,907 per month (up from $1,848)
• Aged Widow(er) (alone): $1,773 per month (up from $1,718)
• Disabled Workers: $1,537 per month (up from $1,489)
• Spouse, 1 or more children, and Disabled Workers: $2,720 per month (up from $2,636)
• Widowed Mother and 2 Children: $3,653 per month (up from $3,540)

For individuals reaching the full age of retirement, the tax exempt amount of retirement income will be $59,520 per year, up from $56,520.

In summary, the Social Security Benefits administered by the SSA are set to rise in 2024, offering crucial assistance to millions in meeting their essential needs and alleviating financial strains. The adjustment aligned with the increasing cost of living demonstrates the Social Security Administration’s commitment to providing necessary support to beneficiaries. This benefit increment, coupled with additional adjustments, promises a valuable enhancement to the financial stability of individuals who depend on Social Security.

FAQs

Q: Will the increase in Social Security benefits take effect immediately?

A: No, the increase will not take effect until January 2024.

Q: How can I check how much I will receive due to the COLA increase in 2024?

A: You can use your my Social Security Account for faster and more efficient access to this information.

Q: What is the COLA adjustment and how is it determined?

A: The COLA adjustment is tied to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The Department of Labor’s Bureau of Labor Statistics provides the information on the CPI-W increase.