The Social Security Administration has recently announced a raise in benefits for the year 2024.
This increase is good news for retirees and individuals receiving Social Security benefits, as it can help offset the rising costs of living.
However, there are some important things to know about these raises to make the most of them.
Here are five key points to be aware of regarding Social Security raises in 2024.
1. Cost of Living Adjustment (COLA):
The Social Security Administration adjusts benefits annually based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
The cost of living adjustment (COLA) for 2024 is expected to be around 6.1%, which is the largest increase in decades.
This means that Social Security beneficiaries can expect a significant raise in their monthly benefits starting in January 2024.
2. Maximum taxable earnings:
In 2024, the maximum amount of earnings subject to Social Security taxes will increase to $156,000, up from $147,000 in 2023.
This means that high earners will pay more in Social Security taxes, which will help fund the increased benefits for retirees and other beneficiaries.
3. Benefit calculations:
Social Security benefits are calculated based on your highest 35 years of earnings.
This means that the amount you receive in benefits can vary depending on your work history and earnings.
With the raise in benefits for 2024, it’s important to review your earnings record with the Social Security Administration to ensure that you are receiving the maximum benefit you are entitled to.
4. Medicare premiums:
While Social Security benefits are increasing in 2024, so are Medicare premiums.
Most Social Security beneficiaries have their Medicare premiums deducted directly from their Social Security checks.
It’s important to be aware of any changes in Medicare premiums to plan for any potential decrease in your net benefits.
5. Supplemental Security Income (SSI):
Supplemental Security Income (SSI) is a program that provides cash assistance to low-income individuals who are elderly or disabled.
The federal benefit rate for SSI in 2024 is $841 for an individual and $1,261 for a couple.
It’s important to understand how Social Security raises may impact your eligibility and benefit amount for SSI.
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Conclusion
The Social Security raises in 2024 are a welcome increase for beneficiaries, but it’s important to be informed about how these raises may impact your benefits and finances.
By understanding key points such as the cost of living adjustment, maximum taxable earnings, benefit calculations, Medicare premiums, and SSI, you can make the most of your Social Security benefits in the coming year.
Be sure to stay informed and consult with a financial advisor if you have any questions or concerns about your Social Security benefits.