What you need to know about the increase in Social Security benefits in 2024
In 2024, more than 71 million Americans will see a 3.2 percent increase in their Social Security and Supplemental Security Income (SSI) benefits, as announced by the Social Security Administration. Starting in January, monthly Social Security retirement benefits will increase by $50.
For more than 66 million Social Security beneficiaries, the 3.2 percent cost of living adjustment (COLA) will be effective starting January 2024, while approximately 7.5 million SSI recipients will see payment increases starting in January 29. December 2023, XNUMX. Some people receive both Social Security and SSI benefits.
The COLA calculation, regulated by the Social Security Law, is linked to the annual increase in the Consumer Price Index for Urban Wage Earners and Clerical Employees (CPI-W), determined by the Department of Labor's Bureau of Labor Statistics. This ensures that Social Security benefits keep pace with real-world economic conditions. As a result, the maximum earnings subject to Social Security tax, known as the taxable maximum, will increase from $160,200 to $168,600, reflecting wage growth.
People who reach “full” retirement age in 2024 will have their earnings limit raised to $59,520, allowing them to earn more without deductions on their benefits. However, workers who have already reached “full” retirement age or are older throughout the year will not face income restrictions.
Social Security will begin sending notifications about new benefit amounts in early December. Those with a personal my Social Security account can safely and quickly view their COLA notice online, eliminating the need to wait for a physical letter. For added convenience, people can set up text or email alerts to be notified of new messages, including your COLA notice, in their my Social Security account.
To guarantee access to your COLA notice online, you must have a my Social Security account by November 14. The process begins in www.ssa.gov/myaccount. This secure and easy-to-use approach allows you to receive COLA notices online and retain them for future reference. Additionally, individuals can opt out of receiving paper notices for items available online, giving them control over their notification preferences.
For information about changes to Medicare in 2024, visit medicare.gov. Social Security beneficiaries enrolled in Medicare will receive their new benefit amount in December through the mailed COLA notice and the My Social Security Message Center.
It is important to note that all Social Security services are provided free of charge, with no requests for advance fees or personal information. Protect yourself from fraudulent calls and Internet phishing schemes by exercising caution.