The Social Security Administration (SSA) is gearing up to implement several changes in 2024 that will directly affect millions of retirees and beneficiaries across the United States.
One of the most anticipated adjustments for 2024 is the Cost of Living Adjustment (COLA), which is based on the increase in the Consumer Price Index (CPI-W). The SSA has announced that the COLA for 2024 will be 3.2%, which will result in an increase in payments to retirees.
This change will directly impact more than 66 million Social Security retirees and survivors who depend on these payments each month. Additionally, nearly 200 million people who work and pay Social Security taxes will also feel the effects of these new regulations.
Furthermore, the maximum Social Security benefit for a worker who retires at full retirement age will increase to US$3,822 in 2024, compared to the average of US$3,627 in 2023. This adjustment depends on the individual’s contributions and years worked.
The maximum amount of earnings subject to Social Security tax will also see an increase to US$168,600 in 2024, up from US$160,200 in 2023. Employees and employers are each required to pay 6.2% of salaries up to this limit. For independent workers, the payment rate is 12.4%.
Limits for pensioners have also been revised. The income limit for individuals collecting Social Security has been raised to $1,860 per month ($22,320 per year) in 2024, up from US$1,770 per month ($21,240 per year) in 2023.
Supplemental Security Income (SSI) recipients should be aware that while the COLA has increased, the payment date for the first COLA has also been rescheduled.
The Social Security payment date has not changed, with the increase in benefits affecting only SSI payments in December. Social Security benefits will see an increase starting on January 3, 2024.
It’s essential for individuals to stay informed about these changes by accessing the government entity’s website, where all the relevant information can be found in Spanish.
Ultimately, these adjustments are essential to ensure that Social Security and SSI benefits keep pace with inflation and provide economic security to those in need. As the SSA gears up for these changes, individuals should take advantage of resources available to them to understand how they will be affected by these modifications.