By Melanie Hamerlinck, Associate Investment Officer
Each year, the Social Security Administration makes updates to the social security retirement program. Below are some key changes to Social Security beginning January 2024 that will affect workers and retirees.
- COLA Increase: Social Security benefits will increase by 3.2% due to the cost-of-living adjustment (COLA). This will boost the average monthly payment by $59.
- Increase to Maximum Benefits: The maximum social security benefit for workers retiring at full retirement age (FRA) will increase from $3,627 to $3,822. This only affects those who will claim benefits at FRA, which is currently either 66 or 67, depending on the individual’s birth year.
- More Income to be Taxed: The maximum amount of earnings subject to the social security payroll tax is increasing from $160,200 to $168,600. Per the Social Security Administration, only 6% of workers who pay social security taxes have earnings above the taxable maximum amount.
Please contact us with your social security questions. We have the tools and resources to help you organize your social security decisions.