Benefits will soon have new amounts for the year 2024. In this way, the Social Security Administration (SSA) will try to maintain the purchasing power of disability and retirement beneficiaries. As the cost of living increases, seniors and people with disabilities need higher payments in the USA.
In case you did not receive any benefits in 2023, you need to know that these payments increased by 8.7% in 2023. Even though many Americans receiving retirement or SSDI checks enjoyed it, it may cause a feeling of disappointment in 2024.
This is mainly because those who are receiving Social Security benefits will feel that they are getting too little money. After getting the highest Cost of Living Adjustment in more than 40 years, a 3.2% boost does not seem enough.
HOW WILL BENEFITS FOR RETIREES CHANGE IN 2024?
If you are receiving a monthly payment worth $1,848, that is the average retirement benefit in 2023 before the 2024 COLA. After the new cost of living adjustment, it will become a check worth $1,907.
However, not all seniors collect the same amount of money because it depends on when you retire, your work, and your earnings history. For example, if you just receive $1,000, you will get $1,032. Those with larger retirement benefits can get $2,064 in 2024 if their check is worth $2,000 in 2023.
What is more, there is a new maximum amount with a payment larger than $4,555 in 2023. According to the Social Security Administration, there will be a new maximum amount for retirees in 2024.
This new check will be worth $4,873 in 2024. Bear in mind that this check is only for high earners who received the taxable maximum for 35 years and retired at the age of 70 in 2024. Those who retire at full retirement age can receive benefits of up to $3,822 and up to $2,710 at 62.
PAYMENTS FOR PEOPLE ON DISABILITY CHECKS IN 2024
Americans on disability benefits will also get more money in 2024. They will also take advantage of a 3.2% increase. Nevertheless, their payments are usually smaller than those who are in retirement.
The main reason why they collect smaller payments is because they did not have much time to work and pay Social Security taxes. So, their disability prevents them from working anymore or for some time.
For example, if you get disability benefits and your check is worth $1,489 in 2023, your check will be worth $1,537 in 2024. This will be the expected average payment in 2024. Apart from these changes, there will be new Social Security Disability Thresholds.
The new price for work credits will also go up, so you will need more earnings to get retirement or disability checks in the future if you are still working. SSI recipients will also cash a larger payment worth $943, up from $914. Couples on SSI can get $1,415 per month, up from $1,371. Apply for SSI if you just get SSDI.