Update on the 2024 Cost of Living Adjustment from Social Security (https://choosework.ssa.gov/blog/2023-10-30-update-2024-cost-of-living-adjustment.html) (https://www.ssa.gov/news/press/releases/2023/#10-2023-2).
To help people who receive benefits and payments keep up with the changing cost of living, Social Security beneficiaries often receive an annual cost-of-living adjustment (COLA). Each year, Social Security bases the COLA on changes in the Consumer Price Index.
For 2024, Social Security benefits and Supplemental Security Income (SSI) payments will increase by 3.2%. This means that more than 71 million Americans will see a change in their benefit payments.
Here are some important 2023 Social Security Facts:
The Tax Rate 7.65% – Will remain the same as last year. The 7.65% is the combined rate for Social Security and Medicare. The Social Security portion is 6.20% on earnings up to the applicable taxable maximum amount. The Medicare portion is 1.45% on all earnings. Here is how the applicable taxable maximum amount is applied.
| Maximum Taxable Earnings |
2023 |
2024 |
|||||||||
| Social Security (OASDI only) |
$160,200 |
$168,600 |
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| Medicare (HI only) |
No Limit |
||||||||||
| Quarter of Coverage |
$1,640 |
$1,730 |
|||||||||
| Retirement Earnings Test Exempt Amounts: Under full retirement age |
$21,240/yr |
$22,320/yr. |
|||||||||
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.
|
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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 |
||
|
Before |
After |
|
|
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 |
This is a snapshot of the cost- of-living changes for 2023. Give us a call at 888-359-2366 with any questions or for more information on how these changes may impact your specific situation.
~ Stella
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