There will soon be some important changes to the amounts retirees can receive in 2024. The Social Security Administration has announced that payments will increase.
Therefore, this is good news because they could have remained the same or even had cuts. Retirees will have to wait until January to receive their new monthly Social Security payments and their new increase.
If you are still working and you are planning to retire in 2024, make sure you know the advantage of retiring late. Retirees who file for Social Security at the age of 70 can receive 24% extra per month. Those who file at 62 will get cuts of up to 30%.
WHAT WILL BE THE NEW MAXIMUM AMOUNT FOR RETIREES IN 2024?
According to the Social Security Administration, the new maximum amount retirees can collect will be $4,873, up from $4,555 in 2023. However, only some lucky workers can obtain it.
Apart from filing at 70 they must have worked for at least 35 years and received the taxable maximum all that time too. Taxable maximums ($160,200 in 2023) are only attainable for a few Americans and almost all of their work history even fewer retirees can achieve it.
Remember that every year you work after Full Retirement Age you will get 8% extra per month as a retiree. Once you reach the age of 70, your Social Security will stop growing.
Therefore, it is the age of 70 when you must file and become a retiree. There is no point in carrying on at work. At least, it is not the best idea from a financial point of view. The maximum amount at Full Retirement Age will be $3,822 and $2,710 at 62 in 2024
WHAT IS THE MINIMUM AMOUNT SOCIAL SECURITY CAN PAY?
A retiree can have larger or smaller Social Security payments depending on when they retire, the number of years they worked, the salary they got and taxes they had to pay.
No senior can get Social Security unless they have worked for at least 10 years. In fact, it will be essential to get at least 40 work credits to become a retiree. Of course, this could be very little money.
The special minimum benefit a retiree can receive is $49.40. If you had at least 30 years of coverage, that payment will be about $1,033.50 claims Social Security.
As retirees may not have enough money to make ends meet if they get the minimum amounts, they can apply for SSI. SSI is the Supplemental Security Income. It will have new amounts in 2024 too. They could be $472 (essential person), $914 (single person), or $1,415 (eligible married couple) in 2024.