The Social Security landscape is set to undergo changes in 2024, with significant implications for millions of Americans. The Cost-of-Living Adjustment (COLA) for Social Security beneficiaries is projected at 3.2 percent, providing an average monthly increase of $59. Although a decrease from the previous year’s 8.7 percent, it remains higher than the historical average since the ’90s.
Medicare premiums, directly deducted from Social Security payments, are poised to rise, affecting the net gain from COLA. The standard monthly Part B rate will increase from $164.90 to $174.70, offsetting the benefit boost by approximately $10 a month.
Social Security taxes, funding the benefits, remain at 12.4 percent, but the income threshold subject
Social Security taxes, funding the benefits, remain at 12.4 percent, but the income threshold subject to taxation will rise to $168,600 in 2024, up from $160,200 in 2023.
Meanwhile, Social Security Disability Insurance (SSDI) recipients face higher income limits in 2024, with the threshold set at $1,550 per month for most beneficiaries and $2,590 for those receiving SSDI based on blindness.
Earning Social Security credits, crucial for retirement benefits eligibility, sees an increase to $1,730 per credit in 2024.
Individuals can earn up to four credits a year, requiring 40 credits or ten years of covered work for qualification.
Qualifying for SSDI also depends on accumulated credits, ranging from six to 40, depending on the age when a medical condition interrupts work.
When are payments being made?
Due to January 1, 2024, being a holiday, the initial increased SSI payment is advanced and scheduled for Friday, Dec. 29, 2023.
The 3.2 percent Cost-of-Living Adjustment (COLA) increase for Social Security and Supplemental Security Income (SSI) payments in January 2024 will be distributed on staggered dates.
Subsequent payments will be sent on the following dates: January 3 for those receiving benefits before May 1997, January 10 for beneficiaries with a birth date from the 1st to the 10th, January 17 for those with birth dates from the 11th to the 20th, and January 24 for beneficiaries with birth dates from the 21st to the 31st.
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