According to an announcement, cost of living adjustment (COLA) benefit checks will increase by 3.2% in 2024. Because of the 3.2 percent increase, the average retired worker on Social Security will see a $59 increase in monthly payments beginning in January. Though the effect varies depending on factors such as the type of benefit and when it was claimed, all Social Security recipients will be affected.
What Are the 5 Major Social Security Changes Expected in 2024?
1. Increase in COLA (cost of living adjustment)
According to the SSA, benefit payments will increase 3.2% in 2024. Because of the 3.2 percent increase, the average retired worker on Social Security will see a $59 increase in monthly payments beginning in January. Though the effect varies depending on factors such as the type of benefit and when it was claimed, all Social Security recipients will be affected.
2. Increase Income Tax
The Social Security payroll tax will be levied on wages ranging from $160,200 in 2023 to $168,600 in 2024. This increase will primarily affect those with high incomes. Employees deduct 7.65% of the FICA tax from their paychecks, with 6.2% going to Social Security.
3. The maximum SSA benefit will increase.
The highest Social Security income for an employee reaching full retirement age is expected to rise in 2024. According to CPA Practice Advisor, the maximum Social Security benefit for an employee reaching full retirement age will rise to $3,822 in 2024, up from $3,627 in 2023. This only applies to persons who file claims with FRA, which is 66 or 67, depending on your birth year.
4. Spouse and disabled worker benefits will be increased.
All benefits, including those for widows, widowers, and people with disabilities, will experience an increase on average in 2024. The average monthly pension for elderly widows and widowers living alone will rise from $1,718 to $1,773.
5. Raised Benefits for Low-Income Families.
The maximum benefit available to persons who have worked for low pay for at least 30 years is a pathetic $1,033.50 per month. This falls far shy of the $1,215 federal individual poverty line. Biden has proposed a 125% increase in the national poverty line as the level of the particular minimum benefit.
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