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The Social Security Payment Will Increase in 2024 | Will You Receive It?

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The Social Security Payment Will Increase in 2024 | Will You Receive It?

The Social Security Payment Will Increase in 2024 | Will You Receive It. The Social Security Administration (SSA) has announced a significant increase in Social Security and Supplemental Security Income (SSI) payments for 2024, benefiting over 71 million recipients.

This update, shared on October 12, 2023, indicates an average monthly rise of USD 50 per claimant starting January 2024.

Delayed Implementation in December 2023

While there won’t be an increase in Social Security amounts in December 2023, the boost will be implemented from January 2024 onwards. This adjustment will bring higher monthly payments for individuals receiving Social Security benefits.

Social Security Benefits Rising by 3.2% in 2024

In January 2024, retirement and disability payments will see a 3.2% increase, resulting in an average monthly raise of over USD 50. Despite being lower than the 2023 adjustment of 8.7%, this marks a significant change for the 71 million individuals reliant on Social Security payments.

Importance of Social Security for Americans

For many Americans in retirement, Social Security is a crucial source of income, with up to 90% of retired workers depending on it to cover essential costs. The annual cost-of-living adjustment (COLA) is a highly anticipated event, and the 3.2% increase for 2024, though less than the previous year, remains substantial.

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Significance of COLA Rises

In the context of rising inflation, Social Security and SSI beneficiaries are expected to benefit from the yearly COLA adjustments. These adjustments, calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), aim to address changes in the prices of typical consumer goods and services.

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Distribution of Social Security Checks in 2024

The issuance of Social Security checks for 2024 will be based on the recipient’s birthdate. Specific dates are assigned for different birthdate ranges, ensuring timely disbursement. Beneficiaries of Supplemental Security Income (SSI) can expect their checks on May 1st, with variations for those who started receiving benefits before May 1997.

Potential Tax Changes

Higher-income individuals may see an increase in taxes, as the maximum wages subject to the Federal Insurance Contributions Act (FICA) will rise from USD 160,200 in 2023 to USD 168,600 in 2024. FICA funds Medicare and Social Security.

Check Your Mail Now

Beneficiaries are encouraged to check their mail in December, as the SSA has initiated the mailing of notices regarding the Social Security Increase Payment 2024. Additionally, individuals with My Social Security accounts can opt for text or email notifications for updates on the cost-of-living adjustments.

Additional Resources

For detailed information on Medicare’s 2024 reforms, www.medicare.gov is a valuable resource. The Senior Citizens League, a prominent nonpartisan seniors organization, has provided preliminary estimates of the 2024 COLA based on consumer pricing data through August.

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Estimated AM Social Security Benefits Payable in January 2024

Beneficiary Before 3.2% COLA After 3.2% COLA
Retired worker USD 1,848 USD 1,907
Married couple, both receiving benefits USD 2,939 USD 3,033
SB, older spouse USD 1,718 USD 1,773
SB, widowed parent and two qualifying children USD 3,540 USD 3,653
Worker receiving  DB USD 1,489 USD 1,537
SSI MFB, individual USD 914 USD 943
SSI MFB, married couple USD 1,371 USD 1,415

Conclusion

The Social Security Increase 2024 brings vital relief to over 71 million Americans, with a 3.2% rise in benefits. Despite a lower adjustment than the previous year, this increase addresses crucial financial needs in the face of growing inflation.

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