Social Security Announces 2024 COLA

The Social Security Administration (SSA) announced that monthly Social Security benefits will increase by 3.2% beginning January 2024. According to AARP, the average monthly benefit will increase $59, reaching $1,907 per month.

The SSA also announced changes to other limits.

• The maximum amount of earnings subject to the Social Security tax for all workers will increase from $160,200 to $168,600. (There is no earnings limit on the Medicare tax.)
• The earnings limit for workers who are younger than full retirement age increases from $21,240 to $22,320.  SSA deducts $1 from the benefit for each $2 earned over $22,320.
• The earnings limit for those reaching full retirement age in 2024 increases from $56,520 to $59,520. SSA deducts $1 from benefits for each $3 earned over $59,520 until the month a worker reaches full retirement age. After reaching full retirement age, there is no earnings limit and no reduction.

Medicare Part B premiums will increase in 2024. Most beneficiaries will pay a basic premium of $174.70 per month, an increase of $9.80. Higher income beneficiaries will pay a surcharge above the basic premium ranging from $69.90 to $419.30 per month per person based on income. The income thresholds for these surcharges begin at $103,000 for individuals and $206,000 for married couples filing jointly. Medicare Part B covers doctors and outpatient services; the premiums are generally deducted directly from Social Security benefits.

For more information, please review the CMS 2024 Medicare Parts A & B Premiums and Deductibles and the 2024 Social Security Changes Fact Sheet. If you have any questions, please contact the JRB at 888-JRB-FREE (572-3733) or staff@jrbcj.org.

November 2023