Social Security Changes 2024: Outlining the Impact on Americans

Portland, Oregon – Social Security recipients will see several changes in 2024, with some adjustments having both positive and negative impacts on their finances. The cost-of-living increase (COLA) for 2024 is expected to be 3.2%, which, although significantly less than the 8.7% increase in 2023, is still higher than the average over the past couple of decades.

For retirees, the 3.2% increase will result in a boost to the average monthly payment, while the maximum amount of earnings subject to the Social Security payroll tax will also increase. This means that workers with high salaries will see more of their income being taxed for Social Security.

Furthermore, the maximum Social Security benefit for those retiring at full retirement age will also see an increase in 2024, from $3,627 in 2023 to $3,822. Additionally, individuals who continue to work after filing for Social Security retirement benefits will face higher earnings test exemptions in 2024.

Changes are also slated for spousal and disability benefits, with benefits for widowed mothers and aged widows and widowers expected to increase in the new year. Lastly, individuals receiving Supplemental Security Income (SSI) in addition to Social Security can anticipate an increase in the SSI Federal Payment Standard in 2024.

These changes will impact most working and retired Americans, as the Social Security program continues to evolve and adapt to economic conditions. While some changes may bring positive financial effects for beneficiaries, there are also adjustments that will require individuals to reassess and plan for their financial futures.