The Social Security Administration or SSA, recently announced important changes and key dates for seniors Benefits before May 1997. In this case, there is good news.
Older people who have been longer Social security benefits they may have lost more purchasing power due to inflation. Rising prices in 2022 and 2023 have made it really hard for retirees to make ends meet.
Even if they got an 8.7% increase in 2023, that doesn’t seem like enough for the exorbitant prices. Hopefully the prices will start to drop soon and they will have more room to save and free time.
What is the main change in Social Security regarding retirement benefits?
Seniors are happy to learn about the fact that their monthly payments will increase in 2024. Therefore, they will be able to have more money for their monthly expenses. Getting more money is essential to be able to meet all the basic expenses.
Social security revealed that there will be a 3.2% increase in their monthly checks. So there is more good news, as this COLA is higher than some experts predicted a few months ago.
It was thought it could be around 2%, which is closer to the average COLA. In truth, there will be a lower COLA than in 2023. FYI, the last COLA for 2023 was 8.7%. If you have a large payment, this increase will give you many more dollars per month.
It’s true that if your payment is low, it may seem like a small increase. However, it is advisable to see it as the total amount you will receive over 12 months. So if you get $30 extra a month, you can get 360 in a year.
What might average benefits be in 2024?
As of October 12, 2023, the average advantage for all retired workers it is $1,848. If you add a 3.2% increase, the average check could be about $1,907 in 2024, Social Security’s latest 2024 COLA fact sheet shows.
The largest Social Security check in 2024 will be up to $4,873, up from $4,555. But only late filers who have earned the taxable maximum over 35 years can get it. Note that the taxable maximum is $160,200 in 2023, so it’s not easy to reach.
Those who meet the requirements mentioned above but instead retire at full retirement age can collect Benefits to $3,822, compared to $3,627. Filing early can mean reducing your check by about 30%.
Those seniors who filed at age 62 could receive checks of up to $2,572 in 2023 or $2,710 in 2024. If you’re always short on cash, make sure you stick to a monthly or even weekly budget. This can help you save a lot of money and think about the ways you overspend your Social Security pension Benefits.