Three Changes Coming to Social Security in 2024

Social Security is constantly evolving. As we get ready to usher in a new year, let’s look at three changes happening to Social Security in 2024 as explained by The Motley Fool.

1. Bigger Benefits — The Social Security Administration announced a 3.2 percent cost-of-living adjustment (COLA) to help offset the impact of inflation. It should boost the average retiree’s benefit check by about $59 per month.
2. Higher Earnings Limits — Next year, the earnings limits for workers who begin receiving retirement benefits before their full retirement age (FRA) will be higher. Social Security deducts $1 from benefits for every $2 earned above a specified threshold for anyone who begins receiving Social Security before their FRA. That threshold is currently $21,240 but will increase to $22,320 next year. When workers reach their FRA, the previously deducted benefits will start to be repaid. In the meantime, this Social Security change will mean more disposable income for seniors who claim retirement benefits early but continue to work.
3. More Payroll Taxes — Right now, only the first $160,200 of income is subject to the Federal Insurance Contributions Act (FICA) payroll tax that helps fund Social Security and Medicare. Beginning in January, this maximum taxable earnings limit will jump 5.2 percent to $168,600.

But the one big change Social Security needs the most has not happened. Something needs to be done to prevent Social Security insolvency because its trust fund is expected to reach a deficit within the next 10 years.

The Seniors Trust believes the best way to do that is through passage of the Social Security Expansion Act. This landmark piece of legislation will increase monthly Social Security benefit payments, create a strong and long-lasting trust fund, and guarantee every retired worker receives adequate Social Security benefits and a fair Cost-of-Living Adjustment (COLA). You can show your support by signing our petition to Congress.