Major Changes Coming to Social Security in 2024: Save the Date. The Social Security Administration is set to introduce significant alterations in 2024, and it’s crucial to stay informed about the key updates that will greatly benefit retirees. Here’s a breakdown of the upcoming changes:
1. Boost in Monthly Benefits
Come January 2024, the Social Security Administration (SSA) will initiate a series of pivotal changes that will have a substantial impact on retirees currently receiving benefits in the United States.
[irp]One of the most noteworthy changes is a boost in monthly benefits. This increase is a result of the annual Consumer Price Index adjustment, and it will lead to an uptick in your monthly payments. However, there’s an exception for those on Supplemental Security Income (SSI), as their payments will be deposited on December 29 due to January 1 being a holiday.
2. New Social Security COLA Increase for Retirees
Starting from January 1, 2024, Social Security beneficiaries will begin receiving the new Cost of Living Adjustment (COLA) increase. While the percentage increase might be uniform, the actual monetary benefits will vary from one recipient to another. This is because benefit amounts are determined by factors such as previous earnings, work history, and the age at which individuals file for Social Security.
[irp]Thanks to the new COLA, seniors can look forward to receiving higher monthly payments.
3. Tax Implications for Working Retirees
The second major change pertains to taxes and is of particular significance for retirees who continue to work while receiving retirement benefits. While all seniors will enjoy increased benefits, some may find themselves subject to Social Security taxes.
It’s important to be aware of the earnings limit if you haven’t reached the retirement age yet but are still receiving benefits and working. Exceeding this limit will result in a reduction in your monthly benefit check. To understand the full scope of possible reductions, you can visit the SSA website.
[irp]Additionally, the taxable maximum for Social Security will be on the rise. This means that even if you weren’t required to pay taxes in 2023, you might be liable to do so in 2024. The Board of Trustees has projected that the taxable maximum, which was $160,200 in 2023, will certainly increase in 2024.
Be prepared for these changes in 2024, and stay informed about the specific adjustments that will apply to your Social Security benefits.
