After a 2023 COLA increase of 8.7% which made Social Security payments grow a lot, there is a lot of disappointment. Seniors, people on disability, survivors, spouses, or SSI benefits can see that their checks will not grow much.
In spite of the fact that their growth is higher than the average COLA boost, it does not seem to be a realistic update. Exorbitant prices are making it really difficult to make ends meet. Those who had a nest egg may have spent it if they have a mortgage because there are soaring interest rates.
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Social Security has announced that benefits will grow by just 3.2%. Since most beneficiaries are retirees, they feel that using the Consumer Price Index for Urban Wage Earners and Clerical Workers may not be accurate.
How much will Social Security benefits increase?
SSA benefits will increase by 3.2%, which is about 50 dollars extra per month on average. Even if it may not seem like a big increase, the Administration needs to make a big effort to send this extra money to more than 71 million Americans on benefits.
As a matter of fact, an average retirement check can increase by about 59 dollars. For example, if you get the average payment of $1,848 in 2023, that could become $1,907 in 2024. The new maximum amount for retirees will be $4,873 at 70, $3,822 at Full Retirement Age and $2,710 at 62.
Remember that if your Social Security check is small, your increase may seem low too. If you just get $1,000, you new check will be worth $1,032. Those who just get 500 dollars, they can receive 516 dollars in 2024.
SSI beneficiaries will have new amounts too. They can get up to $1,415, up from $1,371 if they are an eligible married couple. Single beneficiaries can get up to $943, up from $914.
Major changes in 2024 by SSA
The amount of money people on disability benefits increases too. So, apart from having a higher check, they will be able to earn more money. The thing is your earnings bracket will depend on your personal situation.
For example, if you are blind, you can get less than $2,590 per month. In 2023, that bracket was just $2,460. People with a disability who are not blind may get less than $1,550 each month. It goes up from $1,470. Undoubtedly, these Social Security changes can improve people’s lives.
The trial work period has a new bracket too. It will soon be $1,110 per month. So it has gone up by 60 dollars. What is more, there will be a new taxable maximum. That is the moment when you do not pay more Social Security taxes regardless of your earnings.
In 2023, you stop paying taxes once you reach $160,200, but it will go up to $168,600. Therefore, this will not be positive if you are such a high earner in 2024. The retirement earnings test limit also goes up. It will be $22,320 (under normal retirement age) or $59,520 if you reach Full Retirement Age.