Major changes to Social Security in 2024, but expect a lower COLA increase

After a 2023 COLA increase of 8.7%, which it did Social security payments grow a lot, there are many disappointments. Seniors, people with disabilities, survivors, spouses or SSI benefits may see their checks not grow much.

Despite the fact that their growth is higher than average COLA Enhancement, doesn’t seem like a realistic update. Exorbitantly high prices make it difficult to make ends meet. Those who had money may have spent it if they had a mortgage because interest rates were rising.

Social security announced that benefits would rise by only 3.2%. Since most beneficiaries are retirees, they believe that using the CPI for urban wage earners and white-collar workers may not be accurate.

How much will social benefits increase?

SSA benefits will grow by 3.2%, which is approx $50 extra per month average. Even if it doesn’t seem like a big increase, the administration needs to make a big effort to send this further money to more than 71 million Americans on benefits.

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In truth, the average retirement check could increase by about $59. For example, if you get an average payment of $1,848 in 2023, that could become $1,907 in 2024. The new maximum amount for retirees will be 4873 dollars at age 70, $3,822 at full retirement age, and $2,710 at age 62.

Remember that if your Social Security Check is low, your magnification may also appear low. If you only receive $1,000, your new check will be worth $1,032. Those who receive just $500 could receive $516 in 2024.

SSI Beneficiaries there will also be new amounts. They can receive up to $1,415, compared to $1,371 if an eligible married couple. Single beneficiaries can receive up to $943, up from $914.

Major changes in 2024 by SSA

The amount of money people on disability benefits get is also increasing. So, in addition to having a higher paycheck, they will be able to earn more money. The thing is, your income will depend on your personal situation.

For example, if you are blind, you can get less than $2,590 per month. In 2023, that group was just $2,460. People with disabilities who are not blind can receive less than $1,550 each month. It is rising from $1470. Undoubtedly these Social security changes can improve people’s lives.

The trial period of work also has a new bracket. Soon it will be $1110 a month. So it’s up $60. Moreover, there will be a new taxable maximum. This is when you stop paying Social security taxes regardless of your income.

In 2023, you stop paying tax once you reach $160,200, but it will rise to $168,600. So it won’t be positive if you have that much income in 2024. The retirement income test also goes up. It will be $22,320 (at normal retirement age) or $59,520 if you reach full retirement age.

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