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Social Security Announces 3.2 Percent Benefit Increase for 2024

-Editorial

Social Security and Supplemental Security Income (SSI) benefits for more than 71 million Americans will increase by 3.2 percent in 2024, the Social Security Administration announced. On average, Social Security retirement benefits will increase by over $50 per month starting in January.

More than 66 million Social Security beneficiaries will see the 3.2 percent cost-of-living adjustment (COLA) beginning in January 2024. Increased payments to approximately 7.5 million SSI recipients will begin on December 29, 2023.

“Social Security and SSI benefits will increase in 2024, and this will help millions of people keep up with expenses,” said Kilolo Kijakazi, Acting Commissioner of Social Security.

Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $168,600 from $160,200.

Social Security begins notifying people about their new benefit amount by mail starting in early December.

The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount. The Medicare portion (HI) is 1.45% of all earnings. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. The tax rates do not include the 0.9 percent.

Social Security begins notifying people about their new benefit amount by mail starting in early December. Individuals with a Social Security account can view their COLA notice online, which is secure, easy, and faster than receiving a letter in the mail.

Information about Medicare changes for 2024 will be available at www.medicare.gov. For Social Security beneficiaries enrolled in Medicare, your new 2024 benefit amount will be available in December through the COLA notice sent by mail and in my Social Security Message Center.

The Social Security Act provides for how the COLA is calculated. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as determined by the Department of Labor’s Bureau of Labor Statistics.

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