Social Security Benefits: In the coming year, approximately 71 million Americans will receive an increase in Social Security benefits. The Supplemental Security Income (SSI) and Social Security will increase by 3.2% in 2024, the Social Security Administration declared on Thursday. The implementation of the cost-of-living adjustment (COLA) is scheduled to commence in January 2024, with benefits being distributed to an estimated 66 million Social Security recipients according to their birthdays. Payments to the 7.5 million SSI recipients will increase on December 29, 2023.
The increase, which was significantly lower than the 8.7% increase observed in the previous year, was calculated using CPI-W data for the months of July, August, and September. The average of the three months’ worth of inflation is calculated and compared to the average for the third quarter of the previous year. The COLA is equal to the percentage difference between the two values.
Social Security Benefits Payment: Final Payment of September 2023
Approximately $57 will be added to the average monthly retirement benefit of $1,790 due to the 3.2% COLA.
Changes in Earning Limit
Additionally, earnings limits for Social Security recipients have been modified. The taxable maximum, which denotes the highest amount of earnings subject to Social Security taxation, will be raised to $168,600.
Workers who have not yet reached the “full” retirement age will be subject to an increased earnings cap of $22,320. Benefits are subsequently reduced by $1 for every $2 earned in excess of $22,320.
In 2024, individuals who attain their “full” retirement age will be subject to an increased earnings cap of $59,520. Benefits are reduced by $1 for every $3 earned in excess of $59,520 until the employee reaches “full” retirement age in the following month. During the entire year, there is no annual earnings cap for employees who have reached “full” retirement age or older.
