Every year, prices of just about everything go up. This means that, if you are receiving a benefit of some type from the Social Security Administration (SSA), you will receive an increase at the start of each New Year. The SSA has already calculated what beneficiaries will receive in 2024 and released this in their 2024 update.
On January 1st, 2024, the increase will be 3.2% of whatever the benefit was in 2023.
What is the SSA’s COLA for 2024?
The acronym COLA stands for ‘cost of living adjustment’. Each year, the COLA update is determined by monitoring price increases of a range of commodities during the first three quarters of the preceding year, as well as the last quarter of the year before that. This means that the 2024 COLA update was determined by the period between the end of September in 2022 through the end of September in 2023.
COLA increases affect the amount that all beneficiaries will receive at the beginning of each New Year. That includes those on disability benefits through either the SSDI or SSI pathway. It is important to note that the COLA is not the same amount for all beneficiaries, but rather is the increase in percentage terms based on what the benefit amount was up to that date. This is because, even though beneficiaries are receiving payments from the same disability benefits program, does not mean that their paycheck amounts are the same.
To give an example of the change in disability benefits because of the COLA update, the average disability benefits paid to people who were eligible through work credits (Social Security Disability Insurance or SSDI) was $1,489 per month. That goes up by 3.2% to an average of $1,537 per month next year. Similarly, benefits paid out to individual disabled people who qualify for Supplemental Security Income or SSI will go up to $943 per month in 2024 from $914 per month in 2023.
What is the SGA in 2024?
The amount of Substantial Gainful Activity (SGA), which is the maximum amount of earnings a disabled person can earn before being ineligible for disability benefits, will go up from $1,470 a month in 2023 to $1,550 a month in 2024 if the person is not blind. The blind beneficiary’s SGA also goes up, from $2,460 in 2023 to $2,590 a month in 2024.
How Much Do I Need To Earn in 2024 To Receive a Work Credit?
When you pay your payroll tax throughout your working career, you pay Social Security contributions as a part of this tax. By paying these Social Security contributions through your payroll tax, you accumulate work credits.
Similarly to the amount of disability benefits, the amount you need to earn for a work credit will go up at the beginning of January 2024 from $1,640 per work credit to $1,730 per work credit.
To be eligible for SSDI, you need a certain amount of work credits accumulated during your working life.
What is the Maximum Social Security Benefit Someone Can Receive in 2024?
The maximum amount of Social Security benefits that anyone can receive in 2024 will increase because of the COLA update. This will be $3,822 a month in 2024, an increase from $3,627 in 2023.
The actual amount that you receive will depend on an assessment of various factors such as the actual cost of living where you live and any medical and other essential expenses you have.
Get in Touch With a Disability Lawyer
Every year, most things you need cost more. The increase is monitored and any federal benefits you receive will be increased at the beginning of each New Year. The SSA has determined that the COLA for 2024 will be an 3.2% increase from what was given out in 2023. If you have any problems receiving the benefits you expect, you are advised to hire a disability lawyer to help you.
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