Highlights of Social Security Program Changes for 2024

Introduction

• Overview of recent changes to the Social Security program starting in 2024.
• Video will cover headlines, with deeper dives into certain topics later.
• Suggestion to download Social Security cheat sheet for detailed information.

Cost of Living Adjustment (COLA)

• Benefits will increase by 3.2% in 2024.
• Average Benefit Increases:
  • Retired Workers: From $1,827 to $1,927.
  • Couples: From $2,939 to $3,033.
  • Survivor's Benefit: From $1,718 to $1,773.
  • Disability Payment: From $1,489 to $1,537.

Average Wage Index

• Controls annual changes to Social Security, with a 2-year lag.
• 2022 Wage Index: Increased by 5.32% (from 6,575.57 to 6,795.13).
• Affects 2024 parameters like earnings limit, taxable wage base, and more.

Social Security Formula (Bend Point Formula)

• Used to calculate final benefit amount.
• Bend Points Increases:
  • First: From $1,115 to $1,174.
  • Second: From $6,721 to $7,078.
• Applicable only to those turning 62 in that year.

Windfall Elimination Provision

• Impacts those with a pension from jobs not paying social security taxes.
• Reduction Amount Increase: From $558 to $587.

Maximum Taxable Wage Base

• Maximum wages subject to Social Security taxes in 2024: $168,600.
• Earnings above threshold not subject to Social Security portion of FICA tax.

Earnings Limit for Retirement Benefits

• Applies if collecting Social Security under full retirement age.
• Earnings Limit: Over $21,232 in 2024 leads to $1 withheld for every $2 earned.
• Year of Reaching Full Retirement Age: Limit increases to $56,520; $1 withheld for every $3 earned over limit.
• No earnings limit at full retirement age and beyond.

Additional Resources

• Mention of previous coverage on earnings limits and more.
• Encouragement to subscribe for updates on new changes.
• Availability of a Social Security cheat sheet for detailed information.

Conclusion

• Expectation of more updates throughout the year.
• Importance of staying informed on Social Security changes.