The Senior Citizens League (TSCL) projects a 3.2% increase in Social Security and Supplemental Security Income (SSI) COLA payments for over 71 million Americans in 2024. This rise, based on three-month inflation rates, will result in an extra $59 per month starting in January. Additionally, 7.5 million SSI beneficiaries will begin receiving benefits on December 29, 2023.
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SSI COLA Increase 2024
Social Security and Supplemental Security Income (SSI) beneficiaries can anticipate a 3.2 percent COLA increase for 2024. Starting in January 2024, over 66 million Social Security beneficiaries will see their payments rise, while approximately 7.5 million SSI recipients will receive the increase on December 29, 2023. Additionally, the maximum taxable earnings will be set at $168,600, and earnings limits will be adjusted to $22,320 for those below “full” retirement age and $59,520 for those reaching it in 2024.
Kilolo Kijakazi, the interim commissioner of the Social Security Administration, claims that the SSI COLA Increase 2024 would assist millions of individuals in meeting their financial obligations. Nevertheless, the adjustment is less than in prior years due to a slower rate of inflation. Due to record-high inflation, recipients earned raises of 8.7% for 2023 and 5.9% for 2022, which were the highest since the early 1980s. According to a poll by TSCL, up to 26% of respondents who have been receiving Social Security for more than three years report paying taxes on a portion of their benefits for the first time in 2023.
Due to a big COLA rise in 2023, an even higher proportion will probably be required to pay taxes on their benefits in the SSI COLA Increase in 2024. According to TSCL, when a person’s income is over a specific level, up to 85 percent of their Social Security payments become taxed. The income levels that subject Social Security payments to taxation have never been updated for inflation, in contrast to other provisions of the federal income tax law. Therefore, if Social Security income rises as a result of COLAs, more seniors may cross the levels at which their Social Security payments are subject to tax.
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- TAX ID NUMBER LOOKUP
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- WHERE’S MY REFUND 2023?
- WHEN TO FILE YOUR FEDERAL TAX RETURN
Cost Of Living Adjustment
Social Security and SSI payouts for over 71 million Americans will rise by 3.2% in 2024. The 3.2 percent cost-of-living adjustment (COLA) will commence in January 2024 for almost 66 million Social Security claimants. Approximately 7.5 million SSI users will get higher benefits on December 29, 2023. The Social Security taxable maximum will rise to $168,600.
The earnings cap for workers under “full” retirement age (see Full Retirement Age Chart) will rise to $22,320. ($1 deducted from benefits for every $2 earned beyond $22,320.) The income cap for “full” retirement in 2024 will rise to $59,520. The worker receives $1 less for every $3 earned beyond $59,520 until the month they reach “full” retirement age.
How much retirees can expect?
A $50 monthly average increase in Social Security retirement benefits is anticipated as a consequence of the reform. According to the Social Security Administration, the average monthly retirement payment for workers will rise to $1,907 from $1,848 this year. The majority of Social Security recipients will start receiving larger monthly payouts in January. The December paychecks of SSI beneficiaries will reflect the rise.
How does the 2024 COLA compare?
The cost-of-living adjustment Social Security recipients received this year, which was a record 8.7% and was the largest rise in four decades due to record-high inflation, is substantially less than the benefit increase for 2024. Additionally, it is less than the 2022 cost of living adjustment of 5.9%. The Senior Citizens League, a nonpartisan senior organization, reports that for the previous 20 years, the average cost of living adjustment has been 2.6%.
The 3.2% rise matches a prediction made by The Senior Citizens League a month ago. The Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, is used to determine how much Social Security’s cost of living benefit will increase over time. Third-quarter data are combined, averaged, and compared to the third-quarter average from the prior year. The amount of the COLA will depend on whether there is a raise.
Social Security Benefits increasing next year
With an average monthly rise of about $50, Social Security retirement benefits will help those who receive them keep up with rising expenses of living. The maximum wages due to the Social Security tax will rise from $160,200 to $168,600 as a result of previous yearly changes based on average pay increases.
When Will I see the COLA increase in my Social Security check?
- If your birthday falls between January 1 and January 10, 2024, your payment will be made on the second Wednesday of that month.
- Your payment will be paid out on the third Wednesday of January 2024 if your birthday is between the 11th and the 20th of the month.
- Your payment will be paid out on the fourth Wednesday of January 2024 if your birthday is between the 21st and the 31st of the month.
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