Social Security 2024
Updated: December 27, 2023
Written by Veteran.com Team
Social Security payments will see an 3.2% cost-of-living increase in 2024, the Social Security Administration (SSA) announced. The increase affects roughly 70 million Social Security and Supplemental Security Income beneficiaries.
That means the average retiree will receive an additional $50 per month in Social Security income.
2024 Social Security and SSDI Effective & Payment Dates:
- Social Security benefits (including SSDI) are effective beginning with December benefits, which are payable in January.
- Federal SSI payment levels will begin on Dec. 29, 2023.
2024 Social Security Changes
In 2024, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $168,600 from $160,200.
The earning limit for younger workers will jump to $22,320 in 2024.
For workers who reach age 60 in 2023, the earning limit will increase to $59,520. For each $3 over the limit, the Social Security Administration deducts $1 until the month the worker turns 67.
| Substantial Gainful Activity (SGA) | ||||
| Non-Blind | $1,310/mo. | $1,350/mo. | $1,470/mo. | $1,550/mo. |
| Blind | $2,190/mo. | $2,260/mo. | $2,460/mo. | $2,590/mo. |
| Trial Work Period (TWP) | $ 940/mo. | $ 970/mo. | $1,050/mo. | $1,110/mo. |
| $3,148/mo. | $3,345/mo. | $3,627/mo. | $3,822/mo. | |
| SSI Federal Payment Standard | ||||
| Individual | $ 794/mo. | $ 841/mo. | $913/mo. | $943/mo. |
| Couple | $1,191/mo. | $1,261/mo. | $1,371/mo. | $1,415/mo. |
| SSI Resource Limits | ||||
| Individual | $2,000 | $2,000 | $2,000 | $2,000 |
| Couple | $3,000 | $3,000 | $3,000 | $3,000 |
| SSI Student Exclusion | ||||
| Monthly limit | $1,930 | $2,040 | $2,220 | $2,290 |
| Annual limit | $7,770 | $8,230 | $8,950 | $9,230 |
| All Retired Workers | $1,543 | $1,657 | $1,827 | $1,907 |
| Aged Couple, Both Receiving Benefits | $2,596 | $2,753 | $2,972 | $3,033 |
| Widowed Mother and Two Children | $3,001 | $3,187 | $3,520 | $3,653 |
| Aged Widow(er) Alone | $1,453 | $1,553 | $1,704 | $1,773 |
| Disabled Worker, Spouse and One or More Children | $2,224 | $2,383 | $2,616 | $2,720 |
| All Disabled Workers | $1,277 | $1,358 | $1,483 | $1,537 |
Source: SSA.gov
How Social Security is Calculated
Social Security benefits are based on lifetime earnings and are adjusted or “indexed” to actual earnings to account for changes in average wages since the year the earnings were received. Then, Social Security calculates the average indexed monthly earnings during the 35 years in which the most was earned. They apply a formula to these earnings and arrive at your basic benefit, or “primary insurance amount.” This is how much would be received at your full retirement age — 65 or older, depending on the date of birth.
How Are Social Security Increases Calculated?
To ensure the value of money at retirement keeps up with the rate of inflation, the SSA ties its adjustment for Social Security benefits to the wage earners’ Consumer Price Index (CPI-W). It calculates each year’s Cost-of-Living Adjustment (COLA) by calculating the change in the CPI-W for urban wage earners and clerical workers from the third-quarter average of the previous year to the third-quarter average for the current year.
| CPI-W Measurement | ||||
|---|---|---|---|---|
| 2021 | 2022 | 2023 | 2024 | |
| July | 267.789 | 292.219 | 299.899 | TBD |
| August | 273.567 | 291.629 | 301.551 | TBD |
| September | 274.31 | 291.854 | 302.257 | TBD |
| Third quarter total | 808.157 | 875.702 | 903.707 | TBD |
| Average (rounded to the nearest 0.001) | 269.386 | 291.901 | 301.236 | TBD |
| Inflation According to the CPI-W | 5.9% | 8.7% | 3.2% | TBD |
COLA Increase History Since 1975
| Year | COLA |
|---|---|
| 2024 | 3.20% |
| 2023 | 8.70% |
| 2022 | 5.90% |
| 2021 | 1.30% |
| 2020 | 1.60% |
| 2019 | 2.80% |
| 2018 | 2.00% |
| 2017 | 0.30% |
| 2016 | 0.00% |
| 2015 | 1.70% |
| 2014 | 1.50% |
| 2013 | 1.70% |
| 2012 | 3.60% |
| 2011 | 0.00% |
| 2010 | 0.00% |
| 2009 | 5.80% |
| 2008 | 2.30% |
| 2007 | 3.30% |
| 2006 | 4.10% |
| 2005 | 2.70% |
| 2004 | 2.10% |
| 2003 | 1.40% |
| 2002 | 2.60% |
| 2001 | 3.50% |
| 2000 | 2.50% |
| 1999 | 1.30% |
| 1998 | 2.10% |
| 1997 | 2.90% |
| 1996 | 2.60% |
| 1995 | 2.80% |
| 1994 | 2.60% |
| 1993 | 3.00% |
| 1992 | 3.70% |
| 1991 | 5.40% |
| 1990 | 4.70% |
| 1989 | 4.00% |
| 1988 | 4.20% |
| 1987 | 1.30% |
| 1986 | 3.10% |
| 1985 | 3.50% |
| 1984 | 3.50% |
| 1983 | N/A |
| 1982 | 7.40% |
| 1981 | 11.20% |
| 1980 | 14.30% |
| 1979 | 9.90% |
| 1978 | 6.50% |
| 1977 | 5.90% |
| 1976 | 6.40% |
| 1975 | 8.00% |
