The Social Security Administration or SSA, has recently announced important changes and key dates for seniors on benefits before May 1997. In this case, there is good news.
Seniors who have been longer on Social Security benefits may have lost more buying power due to inflation. Soaring prices in 2022 and 2023 have made it really difficult for retirees to make ends meet.
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Even if they received an 8.7% increase in 2023, it did not seem enough for the exorbitant prices. Hopefully, prices start to go down soon and they can have more room for saving and leisure.
What is the main Social Security change regarding retirement benefits?
Seniors are delighted to learn about the fact that their monthly payments will grow in 2024. Therefore, they will be able to have more money for their monthly expenses. Receiving more cash is essential to be able to deal with all the essential expenses.
Social Security has revealed that there will be a 3.2% increase in their monthly checks. Therefore, there is more good news because this COLA is higher than what some experts forecast a few months ago.
It was believed that it could be about 2%, which is closer to the average COLA. As a matter of fact, there will be a lower COLA than in 2023. For your information, the last COLA for 2023 was 8.7%. If you have a large payment, this increase will provide you with many more dollars per month.
It is true that if your payment is low, it may seem like a small increase. Anyway, it is advisable to see it as the total amount you will receive in 12 months. So, if you get 30 dollars extra per month, you can receive 360 in a year.
What could be the average benefits in 2024?
As of October 12, 2023, the average benefit for all retired workers was $1,848. If you add a 3.2% increase, the average check could be about $1,907 in 2024 stated Social Security on the last COLA fact sheet for 2024.
The largest Social Security check in 2024 will be up to $4,873, up from $4,555. However, only those who filed late and earned the taxable maximum for 35 years may receive it. Bear in mind that the taxable maximum is $160,200 in 2023, so it is not easy to achieve it.
Those who meet the previously mentioned requirements but retire at Full Retirement Age instead can collect benefits of up to $3,822, up from $3,627. Early filing can mean reducing your check by about 30%.
Those seniors who filed at 62 can get checks of up to $2,572 in 2023, or $2,710 in 2024. If you are always running out of money, make sure you stick to a monthly or even weekly budget. This can help you save a lot of money and reflect on the ways you overspend your Social Security retirement benefits.