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Social Security Updates

June 04, 2024

Social Security Updates You Should Know

Whether you’re closing in on retirement or still decades away, Social Security will likely play a key role in your ability to maintain income in your later years. The Social Security Administration (SSA) makes regular changes to benefits that can impact your future retirement.

Here are some Social Security changes for 2024 that could affect you today and in the future.

Cost-of-living increase

When inflation and the rising costs of goods and services start to impact retirees, The SSA raises benefits in what's called a cost-of-living adjustment (COLA). Because inflation was so high in 2023, the COLA for last year was 8.7%. For the coming year, the SSA will increase benefits by 3.2% as a COLA.

Tax caps going up

SS taxes are paid through deductions on your payroll, but there is a limit to the annual earnings subject to these taxes. This number, often known as the tax cap, is increasing by $8,400 in 2024 to $168,600.

Earning limits

According to the SSA, once you start receiving benefits, you are considered retired even if you continue working. But if you keep working into your retirement years, there is a limit to how much income you can earn while still receiving benefits.

If you are under full retirement age and earn more than $22,320 in 2024, your benefits will start to decrease. If you are at full retirement age, the limit for this year is $59,520.

Don’t forget changes to Medicare

Medicare Part B, the health insurance plan for retirees that covers doctors’ services, outpatient care, and other medical expenses that may not be covered by Medicare Part A, will also be affected by these changes. If you receive Social Security benefits and use a Medicare Part B plan, your premium will increase by $9.80. But for those who earn more than $206,000 over the year, those premiums could be higher.

Credits

Social Security credits determine how much you pay into the program and, therefore, the benefits you will receive in retirement. While in 2023, one SS credit was $1,640, in 2024, that number will now be $1,730.

Still, you can only earn at most four credits per year and must earn a total of at least 40 credits over your working life to qualify for future benefits.

Social Security changes

2023

2024

Cost-of-living increase

8.7%

3.2%

Tax cap

$160,200

$168,600

Earning limits before full retirement age

$21,240

$22,320

 

Earning limits at full retirement age

$56,520

$59,520

 

Medicare Part B

$164.90

$174.70

One Social Security credit

$1,640

$1,730

Social Security is constantly changing

Social Security can be a key component of retiring in comfort. Benefits can provide you steady income to help cover expenses later in life. The Social Security Administration is constantly making updates to future benefits and current policies based on economic conditions and policy changes. These changes could impact your future benefits.


It’s always a good idea to keep yourself updated on regular changes by the SSA and how they might affect your future retirement.

Looking for more personalized guidance that aligns with your unique situation? Feel free to reach out; we’re here to help every step of the way.