Social Security in 2024: Key Updates and What They Mean for You

The Social Security Administration (SSA) has announced important updates for 2024, which will significantly impact Supplemental Security Income (SSI) payments. These changes include an increase in the basic SSI payment, cost-of-living adjustments, and other key updates that beneficiaries need to be aware of. In this article, we’ll break down these changes in simple terms to help you understand what’s new for this year.

Changes in SSI Payments for 2024

Basic SSI Payment Increase

Starting in 2024, the basic SSI payment for unmarried individuals who also receive another Social Security benefit will rise to $943, up from $914 in 2023. For couples, the average monthly SSI payment will increase to $1,415, compared to $1,371 the previous year.

Cost of Living Adjustment (COLA)

UNSECURED CREDIT CARDS FOR BAD CREDIT NO CHECKING ACCOUNT

To keep up with inflation, Social Security benefits will see a 3.2% increase under the Cost-of-Living Adjustment (COLA). While this is lower than the 8.7% increase in 2023, it is still higher than the 2.4% average over the past 20 years.

Maximum Monthly Benefit

For those reaching full retirement age (FRA) in 2024, the maximum monthly pension will increase to $3,822 from $3,627 in 2023. This change allows retirees to receive more significant benefits upon reaching the full retirement threshold.

Earnings Limit for Early Claimants

If you claim Social Security benefits before reaching full retirement age, you can now earn more without it affecting your benefits. The earnings limit has been increased, allowing early claimants to have a higher income without penalty.

Increased Taxable Earnings

$2,000 4th Stimulus Check Announced – Eligibility and Deposit Date Information

The maximum income subject to Social Security payroll taxes has increased to $168,600 from $160,200 in 2023. This means higher earners will contribute more to Social Security.

SSDI Benefits and Income Thresholds

Social Security Disability Insurance (SSDI) benefits will grow by 3.2% in 2024. This adjustment will benefit 8.9 million people in the US, with monthly payments reaching $1,537 for non-blind workers and $2,590 for blind workers.

Credit Earning Threshold

To qualify for Social Security benefits, you need to earn enough credits. In 2024, the earnings required to earn one credit will be $1,730, an increase of $90 from 2023. To be eligible, you must accumulate at least 40 credits over your working life.

Why COLA Matters

Big News! $600 SSI Payment Boost Coming in January 2025 – Are You Eligible

The Cost-of-Living Adjustment (COLA) is one of the most significant changes each year because it helps Social Security benefits keep up with inflation. Although the 3.2% increase in 2024 is lower than the previous year, it still ensures that benefits rise in line with the cost of necessities like food, drink, and medications.

Proposed Changes to COLA Calculation

President Joe Biden has suggested changing how COLA is calculated. Currently, the SSA uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). There is a proposal to switch to the Consumer Price Index for the Elderly (CPI-E), which may better reflect the spending habits of older Americans.

Lawmakers Studying COLA

Social Security faces many challenges, and lawmakers are considering ways to improve the COLA calculation. Some experts and lawmakers believe that the current method does not fully protect against inflation. They propose linking COLA to the CPI-E, which focuses on the spending habits of those aged 62 and up, giving more weight to major expenses like housing and healthcare.

Impact of Inflation on Retirees

Rising costs have significantly impacted retirees. About 58% of retirees expect to cut back on spending due to inflation. Since 2000, Social Security payments have lost about 36% of their purchasing power. Many retirees believe Congress should do more to ensure benefits keep pace with inflation.

The SSA’s changes for 2024 are designed to help Social Security beneficiaries keep up with rising costs. From higher SSI payments to increased benefits and a proposed new way to calculate COLA, these updates aim to provide better financial support. Understanding these changes can help beneficiaries plan their finances more effectively and ensure they receive the maximum benefits available.