Here’s an overview of the significant changes to Social Security for 2024 that will affect over 70 million Americans receiving Social Security payments. These changes include updates to the Cost of Living Adjustment (COLA), retirement age, earning caps, tax obligations, and COLA for Social Security and Supplemental Security Income (SSI) beneficiaries.
5 Major Changes to Stimulus Checks in 2024:
- Social Security Benefits: Recipients receiving both Social Security and Medicare will receive their 2024 benefit amount.
- COLA Increase: The COLA increase for 2024 is set at 3.2% plus an additional $132.
- SSI Payments: SSI recipients can expect monthly payments ranging from $800 to $1,800 in 2024.
- Low-Income Seniors: Low-income seniors may be eligible for a $4,200 stimulus check.
- Additional Stimulus Payments: Seniors receiving benefits from VA, SSDI, or SSI may qualify for an additional $1,400 stimulus payment.
Changes to Retirement Age:
The full retirement age (FRA) has been adjusted, affecting when individuals can collect their full Social Security benefits. For those turning 66 in 2024, the FRA is now 66 and eight months, and for those reaching 67 in 2026, the FRA will be 67. This change may require future retirees to work longer or accept reduced retirement payments.
Related: Get Ready: Thousands of Americans to Receive $260 Stimulus Checks Next Week!
Changes to Earning Caps:
There are new limits on how much individuals can earn while receiving Social Security benefits. In 2024, retirees can earn up to $22,320 without their benefits being reduced, with adjustments for those nearing FRA. These caps have increased from the previous year, allowing retirees to earn more without affecting their benefits.
Higher Taxes for High Earners:
High earners will pay higher Social Security taxes in 2024, as the maximum taxable wage has increased to $168,600. This means individuals earning above $160,200 will pay more in Social Security taxes. While this may result in higher future benefits, there is a limit to prevent wealthy individuals from receiving excessively higher benefits.
Related: California’s Generous Tax Rebate: Up to $12,000 for Eligible Residents!
COLA Adjustments:
Social Security and SSI benefits will be adjusted annually based on the Consumer Price Index, with a 3.2% increase for 2024. Beneficiaries will receive notifications detailing their increased payments, accessible through the My Social Security account.
These changes may impact retirement planning, work decisions, and tax obligations, so it’s essential to stay informed about these updates to Social Security.