In 2024, workers could see different impacts on their Social Security benefits. Here are three key things to consider:
1. Increased Social Security Taxes for High Earners: High earners might experience higher Social Security taxes in 2024. This increase is due to the fact that the maximum amount of income subject to Social Security taxes is expected to rise. While the exact figures are yet to be determined, it is essential for high earners to be prepared for potential adjustments to their tax payments.
2. Working While Receiving Retirement Benefits: Workers who choose to continue working while receiving Social Security retirement benefits should take note of potential consequences. In 2024, there will be certain income thresholds that, if exceeded, could reduce their benefits. It’s crucial for individuals who plan to work while receiving retirement benefits to understand these thresholds and how their earnings might impact their Social Security payments.
3. Cost-of-Living Adjustment for Social Security Beneficiaries: Social Security beneficiaries can anticipate a boost to their benefits in 2024. This increase is based on a 3.2% cost-of-living adjustment (COLA) to help account for rising living expenses. The exact amount of the adjustment will depend on the recipient’s specific circumstances and the average prices of goods and services.
Workers and Social Security beneficiaries should be aware of these key considerations to effectively plan for their financial futures. By understanding potential changes to Social Security taxes, the impact of working while receiving retirement benefits, and the COLA adjustments, individuals can make informed decisions about their finances in 2024 and beyond.