Money is becoming scarce after the soaring inflation in recent years. Luckily, the Social Security Administration will increase benefits by 3.2% from December 29 onward.
Regardless of your Social Security payment, you will receive more money. So, it does not matter if you are receiving SSDI (disability benefits), retirement, or Supplemental Security Income (SSI).
Retirees get more money on average than those on SSDI. Therefore, the 3.2% increase may seem more appealing in their case. If you get $1,000, your boost is just 34 dollars. Those who collect a payment of $4,500 can get $148 extra per month. As you can see, there is a big difference.
WHO WILL GET $318 MORE THAN IN 2023 FROM SOCIAL SECURITY?
Although there will be few retirees getting $318 more in 2024, they can actually get up to $4,873. This will be the new maximum amount if you file at the age of 70, not before.
Comparing that maximum amount in 2024, $4,873, with the one in 2023, $4,555, you can see that there is a difference of $318. However, most retirees will not receive such a large increase.
On average, all Social Security beneficiaries will get about 50 dollars extra per month. That will be about 600 dollars extra in just one year. Save that money if you think is too little. By the end of 2024, you will have a fantastic emergency fund.
Seniors collecting an average Social Security payment will cash about $1,907 in 2024, up from $1,848. Then, their increase will be about 59 dollars, which is higher than the average SSA beneficiary.
WHO CAN GET $4,873 FROM SSA in 2024?
In order to get such a large payment, you must have been a high earner. Only those American workers who have earned the taxable maximum for 35 years can receive it. The taxable maximum is $160,200 in 2023, but it keeps going up every year.
So, it will be $168,600 in 2024. What is more, this large Social Security payment is only for those who have worked for at least 35 years. So, if you have earned the corresponding taxable maximum for 35 years, you may still have a chance to get such a large payment.
The last but not least requirement has to do with the age you file for retirement benefits. The Social Security Administration will request you to file at the age of 70 and get the taxable maximum for 35 years.
If you do not meet all these requirements, you will not get such a large increase. Even if you are not a high earner, delay retirement, get well-paid jobs, and work for at least 35 years to increase your benefits.