Alright, fellow patriots, buckle up for some news that’ll make your wallets feel a tad heavier – or at least slow down their shrinkage. Uncle Sam’s decided to toss a few more greenbacks our way, and while it might not be enough to buy that yacht you’ve been eyeing, it’s something. Let’s dive into the nitty-gritty of Social Security’s latest attempt to keep up with the times (and those pesky price tags).
1. The COLA Fizz: A 3.2% Boost
The Social Security Administration has announced a 3.2% cost-of-living adjustment (COLA) for 2024. This increase will affect more than 71 million Americans receiving Social Security benefits and Supplemental Security Income (SSI) payments. On average, Social Security retirement benefits will increase by more than $50 per month starting in January 2024.
“The Social Security Administration announced a 3.3% cost-of-living adjustment (COLA) for 2024, which means higher payments for beneficiaries.”
While the actual increase is 3.2%, not 3.3% as stated in the quote, the sentiment remains accurate. This adjustment aims to help beneficiaries keep pace with inflation and maintain their purchasing power.
2. Show Me the Money: Benefit Increases
The average check for retired workers will increase from $1,848 to $1,907 in 2024. That’s an extra $59 per month to help cover rising costs. For those fortunate enough to receive the maximum Social Security benefit at full retirement age, the monthly payment will jump from $3,627 to $3,822. Widows, widowers, and disabled beneficiaries will also see increases in their average benefits.
Don’t be one of the millions of older Americans missing out on benefits! Use the free online BenefitsCheckUp® to find out about programs that can help you pay for food, housing, utilities, and other expenses. Learn more on today's guest blog: https://t.co/ondoZuUOJU pic.twitter.com/b5GeoHkgoL
— Social Security (@SocialSecurity) May 16, 2024
3. Taxable Earnings Cap: The Sky’s the Limit (Sort of)
The maximum amount of earnings subject to the Social Security tax will increase to $168,600 in 2024. This means high-earners will be contributing more to the system, potentially helping to shore up the program’s long-term stability.
4. Earnings Limits: Work More, Keep More
For those still working while receiving benefits, there’s good news. The earnings limit for workers younger than “full” retirement age will increase to $22,320 in 2024. For people reaching their “full” retirement age in 2024, the limit jumps to $59,520. And once you hit full retirement age, there’s no limit on earnings at all.
“The 3.3% COLA will begin with the December 2023 benefits, which are payable in January 2024.”
While the actual COLA is 3.2%, the timing mentioned in the quote is correct. These changes will indeed take effect with the January 2024 payments.
5. SSI Gets a Boost Too
Supplemental Security Income (SSI) recipients aren’t left out of the equation. They’ll also see the 3.2% increase in their monthly payments, providing a little extra help for some of our most vulnerable citizens.
In conclusion, while these changes might not solve all of our financial woes, they do offer some relief in the face of rising costs. It’s a reminder that our Social Security system, while far from perfect, continues to adapt to the economic realities faced by millions of Americans. Stay informed, plan wisely, and remember – every little bit helps in the grand scheme of retirement planning.
