Social Security adjusts payments each year to ensure benefits remain sufficient to cover increases in the cost of living. This is known as COLA, which stands for Cost of Living Adjustment. By 2024, a 3.2% increase in Social Security Disability Insurance (SSDI) payments was realized.
This increase is already being applied throughout the 2024 fiscal year for Social Security beneficiaries, in addition to those who receive SSDI, also for those who receive SSI. Although this increase is lower than previous years, it is still significant and will help beneficiaries cope with increasing daily expenses.
SSDI Payment Dates in April 2024
SSI recipients who received payments before May 1997 or who also receive SSDI get their deposits separately. However, both categories of beneficiaries will receive their payments on April 1. On the other hand, SSDI payments are made every Wednesday according to the benefits procedure.
To be considered for SSI, candidates must apply online. The only required fields that need to be completed are the following: name, date of birth, Social Security number and contact information. The procedure is extremely simple.
The Social Security SSI benefit can help improve the situation of oneself and one’s family during economic difficulties.
Maximum Social Security Benefits in 2024
According to CPA Practice Advisor, the maximum Social Security benefit for workers retiring at full retirement age will increase to $3,822 in 2024 from $3,627 in 2023. This affects only those claiming benefits in the FRA, who are currently 66 or 67, depending on their year of birth. Those who claim benefits earlier receive smaller monthly payments.
This increase is also reflected in other beneficiary groups. For example, widowed mothers with two children will see average benefits increase to $3,653 per month in 2024 from $3,540 in 2023, according to the SSA. Likewise, for elderly widows and widowers living alone, the average benefits will increase from $1,718 to $1,773 per month. For a disabled worker with a spouse and one or more children, the average monthly benefit will increase from $2,636 to $2,720.
In addition, the federal SSI payment standards for people who receive Supplemental Security Income (SSI) benefits along with Social Security will also increase. In 2024, the federal SSI payment standard will be $943 per month, up from $914 in 2023. For couples, the standard will increase to $1,415 per month from $1,371. These increases reflect the periodic adjustments that are made to ensure that benefits remain adequate to meet the basic needs of the beneficiaries.
More Income to Be Taxed from 2024
The maximum amount of earnings subject to Social Security payroll tax will increase to $168,600 in 2024 from $160,200 in 2023. This means that workers who earn more than that amount will pay more Social Security taxes. It is important to note that this increase will mainly affect those with high salaries, since workers pay a FICA tax of 7.65% of their paychecks, and 6.2% of that percentage goes to Social Security.
According to data from the Social Security Administration cited by CNBC, about 6% of workers who pay Social Security taxes have incomes above the taxable maximum each year. This means that a small part of workers, those with higher salaries, contribute a significant proportion of income to Social Security through this payroll tax.
