The new year is just around the corner. By January 2024 will be when the Social Security Administration (SSA) will start to make some key changes. Undoubtedly, these changes will affect those retirees who are on benefits in the United States.
Bear in mind that there are two significant changes regarding Social Security. As there has been an annual Consumer Price Index increase, there will also be a boost to your monthly benefits.
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Therefore, you will receive more money for your payments in January. Unless you are on Supplemental Security Income (SSI). Because your check will reach your bank account on December 29 since Jan. 1 is a holiday.
WHEN WILL RETIREES COLLECT THEIR NEW SOCIAL SECURITY COLA INCREASE?
It will be from January 1, 2024, when Social Security beneficiaries will start collecting the new amounts. Although the percentage to increase benefits may be the same, bear in mind that the amounts are different.
Not all Social Security recipients cash the same amounts because their benefits depend on their previous earnings, work history, and age to file. Thus, thanks to the new COLA (Cost of Living Adjustment) seniors will receive more money every month.
The second crucial change has to do with taxes. This is particularly important to those who have a job while they are on retirement benefits. Although all seniors will get more money from benefits, some may have to pay taxes to Social Security.
Do not forget that those who have not reached retirement age, get benefits, and work, should not exceed the earnings limit. If you go over that limit, you will have to get a reduction in your monthly check.
Visit SSA and see all the possible reductions. What is more, the taxable maximum will also increase. It could mean that even if you do not have to pay taxes in 2023, you may have to do so in 2024. The taxable maximum is $160,200 in 2023 but will certainly increase in 2024 said the Board of Trustees.