The Social Security benefit is a fundamental pillar of United States society. That is why it is so important for all Americans to be aware of any kind of change that happens within those benefits.
Yet, many of these changes can go so unnoticed that not all citizens get to know what is happening. In the case of the COLA, it is somewhat obvious that all citizens may know what will happen. However, the other change we will talk about is not as well known or on everyone’s mind.
Both changes are very important and one is directly related to the other. And the fact is that these changes are positive, at least the COLA change, but they could be negative and thus become bad for Social Security beneficiaries.
Pay attention to the changes we are going to see below, even if you already have in mind that the COLA will arrive in the next year. We don’t know the exact number yet, although we will soon. Do you know what the changes in next year’s Social Security are?
SOCIAL SECURITY CHANGES IN 2024
We will primarily have two changes in Social Security for 2024. The first of these changes is related to the COLA, as we have already discussed. The second change is related to taxes. Still, the two changes are tied together in a direct way through the increase in the annual COLA.
These are the changes we need to pay close attention to:
- COLA 2024: The COLA will have its announcement in just a few days. To be exact, the COLA announcement will come on October 12. On that date, retirees will be able to know the increase that the Administration will make to fight inflation and prevent retirees from losing purchasing power. Everything seems to indicate that the increase will be around 3%.
- Taxes to be paid: The Social Security payroll tax will change a little next year. This section is not on everyone’s mind and yet it should be, as well as the COLA. Currently the maximum cap before taxation is $160,200. This figure will change as the COLA will increase slightly. It will also be announced at the time the COLA is announced.
With these elements in mind our economy will be a little more stable. Remember that we must not only take into account the increase in benefits, but also the increase in taxes to be paid. This is the only way we will achieve stability through the Social Security check as a source of income.