Important Social Security Updates and Impact on Financial Planning
Saturday, 23 March 2024, 09:18
Social Security Changes in 2024
All of these are pretty big. Sometimes, even a program that's been around for decades, like Social Security, can change from one year to the next.
1. Benefits went up
- Social Security recipients saw a 3.2% rise in benefits at the start of 2024.
- Projections suggest a 1.75% boost for 2025, emphasizing the importance of prudent financial planning.
2. The earnings-test limit rose
- The base limit increased to $22,320 in 2024, affecting working retirees.
- Earnings-test implications vary based on FRA status, urging individuals to monitor income thresholds.
3. Earning work credits got harder
The value of a single work credit rose to $1,730 in 2024, potentially impacting part-time workers.
4. The wage cap increased
The wage cap for 2024 is $168,600, up from the previous year, with potential tax implications for higher earners.
The evolving landscape of Social Security underscores the need for informed financial decisions and regular updates on policy changes.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.