Are You Ready For a Raise?
Great news for over 71 million Americans! Social Security and Supplemental Security Income (SSI) benefits will increase 3.2% in 2024, according to the Social Security Administration. Starting in January, the average Social Security retirement benefit will rise by over $50 monthly.
Approximately 66 million Social Security beneficiaries will see the 3.2% cost-of-living adjustment (COLA) from January 2024, while increased payments for around 7.5 million SSI recipients will begin on December 29, 2023. Acting Commissioner Kilolo Kijakazi stated that this boost will assist millions in managing their expenses.
Other adjustments effective in January are tied to the rise in average wages. The maximum earnings subject to Social Security tax (taxable maximum) will increase to $168,600 from $160,200.
Social Security will notify individuals in early December about their new benefit amount. Those with a my Social Security account can conveniently view their COLA notice online, with the option to set up text or email alerts for notifications. To access the online notice, individuals must have a my Social Security account by November 14. Visit www.ssa.gov/myaccount to get started.
Details about Medicare changes for 2024 will be available at www.medicare.gov. Social Security beneficiaries enrolled in Medicare can expect their new 2024 benefit amount in December through the mailed COLA notice and my Social Security's Message Center.
The annual COLA calculation is determined by the Social Security Act, linking it to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) reported by the Department of Labor's Bureau of Labor Statistics.
For more information, visit www.ssa.gov/cola. If you have questions, don't hesitate to contact our advisors at Dixon Financial Group, LLC at 702.982.2479.
David S. Dixon, CFP®
Jacob S. Bierstedt, CFP®, ChFC