The Social Security Administration (SSA) has made a significant announcement. Starting in 2024, over 71 million Americans will see a 3.2 percent increase in their Social Security and Supplemental Security Income (SSI) benefits. This means that the average Social Security retirement benefit will go up by more than $50 per month. Most people who get Social Security will start to see this increase in January, while those receiving SSI will see it a bit earlier, starting December 29, 2023. Keep in mind, some people may receive both types of benefits.
This annual adjustment reflects the commitment to help beneficiaries manage their living expenses in the face of inflation and increased costs of living. Kilolo Kijakazi, the Acting Commissioner of Social Security, highlighted how these increased benefits will aid millions in managing their daily expenses. Along with this, the amount of earnings that are subject to Social Security tax will also go up, from $160,200 to $168,600. For our clients, it is crucial to be aware of these adjustments as they plan their finances for the upcoming year.
The SSA will begin notifying beneficiaries of their new benefit amounts starting early December through mail. You can also visit the my Social Security website to view your notice online. Additionally, for those enrolled in Medicare, updates regarding 2024 changes will be available on the official Medicare website, and the new benefit amounts will be communicated through the mailed Cost-of-Living Adjustment (COLA) notice and the my Social Security’s Message Center.
The adjustments in Social Security and SSI benefits for 2024 serve as a critical component in financial planning and ensuring financial stability in the face of economic fluctuations. As your accounting advisors, we remain committed to providing the guidance and support needed to help you understand these changes and navigate these changes effectively.