Social Security beneficiaries will be able to receive more money from December 29. This will be the first payment with the COLA increase for the year 2024. But this payday will only be for SSI (Supplemental Security Income).
The Social Security Administration (SSA) informed Americans that there would be a 3.2 percent boost. Therefore, this will be a lot less than in the previous COLA.
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Bear in mind that the 2023 COLA was 8.7% and it was much higher than all the Cost of Living Adjustments in forty years. Despite the fact that it is smaller, it is higher than average COLA boosts.
What are the new maximum amounts for Social Security retirement benefits?
Not all workers qualify for Social Security retirement benefits. This is because you need to work for at least ten years and pay taxes to the Administration. Besides, maximum amounts are only for a small group of high earners.
If you are a high earner, you may be interested in knowing the new maximum amounts for 2024. SSA sets the maximum amounts depending on your retirement age.
So, if you retire early, at the age of 62, you will get about 30% less. Late retirement at 70 could be best to receive 24% more per month. If not, Full Retirement Age is the right moment to cash 100% of your benefits.
In 2023 and 2024, the maximum amounts are:
- retirement at 62 in 2023: $2,572
- retirement at Full Retirement Age in 2023: $3,627
- retirement at 70 in 2023: $4,555
- retirement at 62 in 2024: $2,710
- retirement at Full Retirement Agein 2024: $3,822
- retirement at 70 in 2024: $4,873
What is the average increase in Social Security benefits in 2024?
Since there has just been a 3.2% increase, the average boost for all beneficiaries is $50. That does not mean that you may receive more or less money. It will depend on your monthly check.
For example, if your check is worth $1,841, the average amount as of September 2023, it will increase in $58. Therefore, you are receiving more money than other beneficiaries with lower retirement benefits.
Retirees with an average payment from Social Security will receive about $1,899. So, that is nearly $1,900, which is a great check. Bear in mind that SSI beneficiaries are just collecting up to $914 in 2023.
Their new checks will be up to $943. Thus they will just cash 29 dollars extra per month. Since many retirees are also on Supplemental Security Income, they may get two COLAs, one for SSI and the other one from retirement benefits.
As for the starting dates to cash the new maximum amounts will be December 29 for SSI, January 3, 10, 17 24 for SSDI and retirement beneficiaries. If you are still working and want to get a larger check, 62 is the age you can start collecting a reduced check in retirement.