The 2024 COLA Calculation is live. More than 71 million Americans will see Social Security and SSI benefits increase by 3.2 percent.
In this week’s #TuesdayTip, Corporate Trainer Vickie Bell shares a clarification on how to calculate the COLA under the new HOTMA rule effective January 1, 2024.
This adjustment, known as the Cost-of-Living Adjustment (COLA), aims to safeguard the purchasing power of beneficiaries against the erosive effects of inflation. As we delve into the details of this increase and its implications, it’s crucial to understand the broader context of Social Security and SSI benefits.
The 3.2 percent COLA will take effect in January 2024, benefitting more than 66 million Social Security beneficiaries. Additionally, approximately 7.5 million SSI recipients will experience increased payments starting on December 29, 2023. Notably, some individuals are eligible for both Social Security and SSI benefits, emphasizing the widespread impact of this adjustment.
More COLA Impacts
Alongside the COLA, changes in the taxable maximum and earnings limits further shape the landscape for beneficiaries. The maximum amount of earnings subject to the Social Security tax will rise to $168,600. Earnings limits for workers below full retirement age will see an increase to $22,320, with a deduction of $1 from benefits for each $2 earned over this threshold. For those reaching full retirement age in 2024, the earnings limit rises to $59,520, with a deduction of $1 for each $3 earned over this amount until the month the worker turns “full” retirement age. Notably, there is no limit on earnings for individuals who are “full” retirement age or older for the entire year.
For beneficiaries receiving Medicare, information about changes in 2024 will be accessible at www.medicare.gov. The new 2024 benefit amount for Social Security beneficiaries with Medicare coverage will be available in December through the mailed COLA notice and the my Social Security Message Center.