Recently, the Social Security Administration recalculated the benefit for Social Security and Social Security supplemental income recipients in 2024.
For 71 million people, there’ll be an average 3.2% increase in their Social Security benefit in 2024. On average, that’ll be $50 a month. But if you are a higher earner during your working years, that could easily exceed $100. COLA notices are probably going to go out from the administration in December.
On the other hand, the maximum earning, subject to the Social Security tax, is going to increase next year to $168,600. Fortunately, the tax rates will remain the same. So that’s a mixed bag. Really, it’s the same as this year, adjusted for inflation.
Clearly, whether you’re getting a benefit or paying the tax, these are inflation adjustments in real dollars. There’s no change. However, what is important is to understand there are ways to play the Social Security game. There are ways to maximize your Social Security benefit such that over a lifetime you may gain by as much as $150,000. We do this for all of our clients and if you have any questions or would like to discuss this, give us a call.
We wish you the best of investing success.