Social Security

Anticipating Changes to Average Social Security Benefits in 2024

Anticipating Changes to Average Social Security Benefits in 2024. In 2024, the landscape of Social Security benefits is set to transform, impacting recipients across the United States. These modifications, including cost-of-living adjustments (COLA), are poised to reshape the financial security of retirees. In this guide, we’ll delve into the forthcoming changes and when they will take effect.

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COLA and Benefit Increases

Starting in 2024, the Social Security Administration will roll out changes to all beneficiaries’ benefits. While the COLA increase for 2024 won’t be as substantial as the prior year, it’s a significant adjustment. This adjustment will be officially implemented in January 2024. Here’s a breakdown:

COLA Increase in January 2024

The COLA increase, effective from January 2024, offers retirees a way to combat rising inflation. However, its impact varies based on the size of the Social Security benefit. While it’s positive that COLA is a percentage-based increase applicable to all beneficiaries, it may not be enough for some.

Financial Challenges for Some Beneficiaries

The challenge arises when the COLA’s percentage-based increase is insufficient for retirees with smaller benefit checks. The impact of inflation might be harder to mitigate for these individuals. Thankfully, there are supplemental payments like Supplemental Security Income to aid with monthly expenses.

Social Security Payments After 2024

Following the COLA application, every check will experience a 3.2% increase. This figure remains consistent, ensuring predictability. For instance, a $1,000 check will become $1,032 in January 2024. Here’s how it affects different benefit categories:

Supplemental Security Income (SSI) maximum benefit: It will rise from $914 in 2023 to $943 in 2024.
Maximum SSDI benefit: Increases from $3,627 to a maximum of $3,743 per month.
Maximum Social Security retirement benefit at age 70: Grows from $4,555 in the current year to $4,700 in 2024.
Maximum Social Security benefit at age 67 (Full Retirement Age): The check will increase from $3,627 to a maximum of $3,743.

This means that the maximum total Social Security check for 2024 will be $4,700, while other beneficiaries will receive varying increases.

Distribution of 2024 COLA

Curious about when you’ll receive your 2024 COLA-adjusted Social Security payments? Here’s the timeline:

Supplemental Security Income (SSI) Payments: The first 2024 COLA-adjusted SSI payments will be distributed on December 29th for individuals with Direct Deposit activated. This early payment is due to the holiday on January 1st.
Other Social Security Checks: Regular Social Security checks with the 2024 COLA increase will commence in January 2024. Payments will occur on the second, third, and fourth Wednesdays of the month, varying by group of retirees. Be sure to check the calendar to confirm your specific payment day.

These changes in Social Security benefits for 2024, while providing much-needed financial support for retirees, will continue to impact beneficiaries differently, with a focus on inflation management.