What Are The New Changes to Social Security in 2024?
The Social Security Administration goes over and recalculates Social Security every year. Changes to Social security can occur due to changes in the outside environment such as inflation. Whether you are planning for retirement, retired, or already receiving benefits, staying up-to-date on these changes is important so you can better plan your financial future. In this blog, we will highlight a few key changes to Social Security in 2024, including cost-of-living adjustments, changes to retirement age, updates to disability benefits, and more.
Key Changes to Social Security in 2024
Cost-of-Living Adjustments (COLA)
COLA, or Cost-of-Living Adjustments, is an increase in Social Security benefits designed to counteract inflation. In 2024, 71 million Social Security recipients received a 3.2% increase in their benefits from COLA. For example, if someone received $10,000 in Social Security benefits in 2023, their 2024 annual benefit would increase to $10,320.
Changes to Full Retirement Age (FRA)
Full Retirement Age (FRA), is the age you can start receiving a Social Security check. In 2024, the FRA increased for those born in 1960 or later to 67 years. This age has been gradually increasing every year, meaning that the age at which individuals can retire is getting higher and higher. If you choose to retire before 67, you will receive a reduced amount of benefits.
Adjustments to Taxable Earnings
Every year, the Social Security Administration adjusts the maximum amount of earnings subject to the Social Security payroll tax. In 2024, the maximum earnings amount, meaning higher earners will pay Social Security taxes on a larger portion of their income. This amount changed from $160,200 in 2023 to $167,700 in 2024.
Increase in Earnings Limit for Early Retirees
The Social Security earnings limit for early retirees in 2024 is $22,320, which is an increase from $21,240 in 2023. What this means is if you earn more than this amount before reaching Full Retirement Age, $1 in benefits will be withheld for every $2 earned above the limit. For individuals who reach Full Retirement Age in 2024, the earnings limit is set at $59,520
Medicare Part B Premiums and Deductibles
Medicare Part B is a type of medical insurance that covers outpatient care, doctor visits, and other medical services. In 2024, this coverage adjusted its premiums and deductibles. The standard monthly premium for Medicare Part B in 2024 has increased to $186.60, up from $164.90 in 2023. The annual deductible for Medicare Part B increased to $240, up from $233 in 2023. This is the amount beneficiaries must pay out-of-pocket before Medicare Part B starts covering costs. The increases are a reflection of the rising costs of healthcare.
Social Security Benefits & Disability Attorneys Greensboro NC
These are just a few of the key changes to Social Security in 2024. It is important to understand that these changes are designed to keep pace with inflation and evolving financial conditions, ensuring the sustainability of Social Security benefits for current and future retirees. If you have any questions about changes to Social Security, retirement planning, or benefit management, do not hesitate to reach out to an attorney. The Law Office of Stephen E. Robertson stands out as a trusted partner for individuals seeking assistance with social security benefits and disability claims. Led by Stephen E. Robertson, a seasoned attorney with extensive experience in disability law, this law office has earned a reputation for its compassionate approach and steadfast commitment to its clients.