The 6 Social Security Changes Expected in 2024 and Potential Impact on Recipients

Social Security beneficiaries and workers across the nation brace for adjustments that will shape their financial landscape. With 2024 heralding a series of alterations to the Social Security program, both retirees and those still in the workforce will experience shifts in their income and benefits. While some changes promise an uplift in financial security, others pose potential challenges.

The most significant modification announced this month pertains to the Cost-of-Living Adjustment (COLA) slated to enhance Social Security payments starting January 2024. Unlike the substantial 8.7% surge witnessed in 2023, this year’s COLA increase will be tempered due to a dwindling inflation rate.

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Social Security 2024

the-6-social-security-changes-expected-2024-potential-impact-recipients
Social Security beneficiaries and workers across the nation brace for adjustments that will shape their financial landscape.

Here are six key changes scheduled for Social Security in 2024 and their implications:

COLA Increase:

The forthcoming year will witness a 3.2% increase in COLA, a substantial decline from the previous year’s adjustment but still surpassing the average of 2.6% over the past decades. 

Recipients of Social Security benefits will observe varying impacts, influenced by factors such as benefit type and claiming timing. Social Security retirement beneficiaries stand to gain an average monthly boost of $59, while those with long-term disabilities anticipate an average increase of $48 monthly.

Expanded Taxable Income:

The maximum earnings subject to Social Security payroll tax will rise to $168,600 in 2024, affecting individuals with higher incomes. Approximately 6% of workers with incomes surpassing the taxable threshold contribute to Social Security taxes each year.

Increased Maximum Benefit:

The maximum Social Security benefit for individuals retiring at full retirement age will escalate to $3,822 in 2024, catering to those who claim benefits at the Full Retirement Age (FRA), either 66 or 67, contingent upon birth year.

Elevated Earnings Test:

Individuals continuing employment post-Social Security retirement may encounter an earnings test, with the exempt earnings threshold climbing to $22,320 in 2024. Benefits withheld correspond to earnings exceeding this limit, a rule ceasing at full retirement age.

Augmented Spousal and Disability Benefits:

Beneficiaries, including widowed mothers, widowers, and disabled workers with dependents, anticipate larger average benefits in 2024 compared to the preceding year.

Increased SSI Payment Standards:

Recipients of Supplemental Security Income (SSI) benefits coupled with Social Security will witness an elevation in federal payment standards, rising to $943 monthly for individuals and $1,415 for couples in 2024.

People who depend on Social Security must negotiate this changing environment as these changes take place in order to be financially secure and ready for the years to come. Stay informed to effectively manage your financial future amidst these adjustments to the Social Security system.

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