In a notable financial update for retirees, starting January 2024, Social Security recipients are set to see a significant increase in their monthly payments. As part of an annual cost of living adjustment, more than 71 million individuals will benefit from a 3.2% increase, marking the third consecutive year for such a rise.
The United States Social Security Administration (SSA), which oversees Social Security in retirement, confirms this move aims to assist recipients in coping with inflation-related expenses.
Retirees can now expect to earn up to $4,873, with the exact amount dependent on several factors, including retirement age. For example, those retiring at 62 in 2024 will receive a maximum of $2,710, while those retiring at full retirement age can expect up to $3,822. The most significant payment of $4,873 is reserved for individuals retiring at age 70.
The SSA has detailed the payment schedule based on the recipients' birth dates. Payments for those born between the 1st and 10th of the month will be disbursed on the second Wednesday, while those born between the 11th and 20th will receive theirs on the third Wednesday. Finally, beneficiaries born from the 21st to the 31st will get their checks on the fourth Wednesday. The first of these increased payments is scheduled for January 10th.
To calculate specific benefits, retirees are advised to create an account on the SSA website, where they can view estimates based on their earnings and application timing. The site also allows adjustments for expected future income to see its impact on estimated benefits.
This increase is particularly significant for Supplemental Security Income (SSI) recipients, who are among the first to receive the enhanced benefit checks. About 7.5 million SSI beneficiaries began receiving their 2024 checks as early as December 29, 2023. With this adjustment, the standard SSI payment for individuals rises to $943 per month, and for couples, it increases to $1,415 per month.
However, beneficiaries must remain vigilant, especially those receiving two checks in one month, as it could push them dangerously close to the $2,000 asset limit. Such occurrences can lead to overpayment notices and automatic withholding from benefit checks. To mitigate these issues, a bipartisan group of lawmakers is advocating for a bill that would raise asset limits to $10,000 for individuals and $20,000 for married couples, significantly higher than the current $2,000 and $3,000 limits.
In response to these developments, JPMorgan Chase CEO Jamie Dimon during a recent Senate Banking Committee hearing emphasized the need for such adjustments, noting, "This definitely should be fixed," highlighting how current thresholds discourage salary increases and complicate benefits for eligible employees.
As retirees navigate this new landscape, it's crucial for them to stay informed about their benefits and the changing regulations that might affect their financial security.
