The Social Security Administration has recently announced an increase in Supplemental Security Income (SSI) and Social Security Payments for 2024. Recipients can expect an average monthly rise of $50, reflecting a 3.2% increase aimed at helping them cope with the rising costs of consumer goods. This adjustment, known as a COLA (Cost of Living Adjustment), is one of the most substantial in the program’s history and will benefit over 70 million Americans currently receiving social security benefits.
Small business owners and their employees may also feel the impact of the SSA Increase in 2024. Some employees could see higher social security deductions, impacting their take-home income. Additionally, the Expected Increase in SSA Payments has led to a modification in the criteria for the highest social security payment. The highest taxable amount has now been raised to $168,000, with self-employed taxpayers being exempt from this adjustment.
2024 SSA Boost
Starting in January 2024, Social Security beneficiaries will experience a 3.2% increase in their payments due to the implementation of the Cost of Living Adjustment (COLA). The Social Security Administration announced this boost in October, affecting both Social Security retirement payments and SSI Payments in 2024. Over 70 million Americans are expected to benefit from this adjustment, with an average monthly increase of over $50 for retirement payments.
Beneficiaries have already begun receiving notices about the 2024 SSA Payments Increase, with most letters being mailed out in December, according to the Social Security Administration. This 3.2% rise is comparatively lower than the 8.7% increase in 2023 but higher than the 1.3% raise in 2021. The 2022 increase, at 5.9%, was the highest in around 40 years.
Anticipated SSA Payment Rise in 2024
As per SCL, an advocate for issues affecting seniors, the 2024 SSA Increase of 3.2% surpasses the 20-year average boost of 2.6%. The Social Security Administration, after a hiatus, alerts beneficiaries of a COLA, intending to aid seniors and recipients in coping with escalating expenses linked to inflation.
Despite a decline in inflation from its peak, SCL notes that seniors and other Social Security users still struggle with the rising costs. The league emphasizes that Social Security payouts are generally insufficient, typically replacing only about one-third of the average income for a middle-class individual.
Social Security Administration Unveils 3.2% Boost for 2024
The Social Security Administration (SSA) recently announced a modest 3.2% increase in Social Security and Supplemental Security Income (SSI) payments for 2024. Each year, the Consumer Price Index determines the Cost of Living Adjustment (COLA), affecting a significant population of over 70 million Americans. This rise is notably lower than the substantial increases of 8.7% and 5.9% declared for 2022 and 2023, respectively, marking the most significant boosts since the early 1980s.
According to the SSA, adjusted benefit payments under the 2024 COLA will commence in January for over 66 million Social Security beneficiaries and in late December for more than 7.6 million SSI recipients. Additionally, the maximum wages subject to Social Security tax will increase from $160,200 to $168,600 starting in January. The impact of the COLA extends to many families led by older adults who heavily depend on Social Security retirement payments.
Social Security Beneficiary Adjustments
Cost of Living Adjustment in 2024
Starting January 2024, Social Security and Supplemental Security Income benefits will see a 3.2% cost-of-living adjustment, according to the SSA. This increase, determined by the consumer price index, follows an 8.7% raise in the previous year.
Changes in Earnings Limits
In 2024, there will be alterations to the earnings limits for retirees receiving Social Security benefits. Leading up to your full retirement age, you can earn up to $59,520 in the months preceding it. If this limit is exceeded, your benefits are reduced by $1 for every $3 in earnings beyond the limit, reflecting a $3,000 increase from 2023. For benefit recipients below full retirement age, the allowable earnings will be up to $22,320 in 2024 (compared to $21,240 in 2023), with benefits reduced by $1 for every $2 in excess earnings.
Maximum Social Security Benefit
For individuals reaching full retirement age in 2024, the maximum Social Security income will increase from $3,627 in 2023 to $3,822 per month. The average monthly payout will rise from $1,841 to $1,900, a gain of over $50. It’s essential to consider how this change may impact your retirement plans as you make future preparations.
