Social Security and Supplemental Security Income (SSI) benefits for more than 71 million Americans will increase 3.2 percent in 2024, the Social Security Administration announced today. On average, Social Security retirement benefits will increase by more than $50 per month starting in January.
More than 66 million Social Security beneficiaries will see the 3.2 percent cost-of-living adjustment (COLA) beginning in January 2024. Increased payments to approximately 7.5 million people receiving SSI will begin on December 29, 2023. (Note: some people receive both Social Security and SSI benefits).
“Social Security and SSI benefits will increase in 2024, and this will help millions of people keep up with expenses,” said Kilolo Kijakazi, Acting Commissioner of Social Security.
Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $168,600 from $160,200.
Social Security begins notifying people about their new benefit amount by mail starting in early December. Individuals who have a personal my Social Security account can view their COLA notice online, which is secure, easy, and faster than receiving a letter in the mail. People can set up text or email alerts when there is a new message–such as their COLA notice–waiting for them in my Social Security.
People will need to have a my Social Security account by November 14 to see their COLA notice online. To get started, visit www.ssa.gov/myaccount.
Information about Medicare changes for 2024 will be available at www.medicare.gov. For Social Security beneficiaries enrolled in Medicare, their new 2024 benefit amount will be available in December through the mailed COLA notice and my Social Security’s Message Center.
The Social Security Act provides for how the COLA is calculated. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as determined by the Department of Labor’s Bureau of Labor Statistics.
2024 SOCIAL SECURITY CHANGES
Cost-of-Living Adjustment (COLA):
Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2022 through the third quarter of 2023, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 3.2 percent COLA for 2024. Other important 2024 Social Security information is as follows:
|
Tax Rate |
2023 |
2024 |
|
Employee |
7.65% |
7.65% |
|
Self-Employed |
15.30% |
15.30% |
NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. The tax rates shown above do not include the 0.9 percent.
|
2023 |
2024 |
|
|---|---|---|
|
Maximum Taxable Earnings |
||
|
Social Security (OASDI only) |
$160,200 |
$168,600 |
|
Medicare (HI only) |
No Limit |
|
|
Quarter of Coverage |
||
|
$1,640 |
$1,730 |
|
|
Retirement Earnings Test Exempt Amounts |
||
|
Under full retirement age |
$21,240/yr.($1,770/mo.) |
$22,320/yr.($1,860/mo.) |
|
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit. |
||
|
The year an individual reaches full retirement age |
$56,520/yr. ($4,710/mo.) |
$59,520/yr. ($4,960/mo.) |
|
NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit. |
||
|
Beginning the month an individual attains full retirement age |
None |
|
|
2023 |
2024 |
||
|
Social Security Disability Thresholds |
|||
|
Substantial Gainful Activity (SGA) |
|||
|
Non-Blind |
$1,470/mo. |
$1,550/mo. |
|
|
Blind |
$2,460/mo. |
$2,590/mo. |
|
|
Trial Work Period (TWP) |
$1,050/mo. |
$1,110/mo. |
|
|
Maximum Social Security Benefit: Worker Retiring at Full Retirement Age |
|||
|
$3,627/mo. |
$3,822/mo. |
||
|
SSI Federal Payment Standard |
|||
|
Individual |
$ 914/mo. |
$ 943/mo. |
|
|
Couple |
$1,371/mo. |
$1,415/mo. |
|
|
SSI Resource Limits |
|||
|
Individual |
$2,000 |
$2,000 |
|
|
Couple |
$3,000 |
$3,000 |
|
|
SSI Student Exclusion |
|||
|
Monthly limit |
$2,220 |
$2,290 |
|
|
Annual limit |
$8,950 |
$9,230 |
|
|
Estimated Average Monthly Social Security Benefits Payable in January 2024 |
|||
|
Before3.2% COLA |
After3.2% COLA |
||
|
All Retired Workers |
$1,848 |
$1,907 |
|
|
Aged Couple, Both Receiving Benefits |
$2,939 |
$3,033 |
|
|
Widowed Mother and Two Children |
$3,540 |
$3,653 |
|
|
Aged Widow(er) Alone |
$1,718 |
$1,773 |
|
|
Disabled Worker, Spouse and One or More Children |
$2,636 |
$2,720 |
|
|
All Disabled Workers |
$1,489 |
$1,537 |
|
To read more, please visit www.ssa.gov/cola.
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