Social Security 2024 COLA: 3 Key Changes to Earnings Limits

Social Security Announces 2.5% Increase and Changes to Earnings Limits

Social Security benefits will see a
2.5% cost-of-living adjustment (COLA) for 2024,
bringing welcome financial relief to millions of beneficiaries. While this
2.5% cost-of-living adjustment (COLA) for 2024
is more modest than the past two years, it represents important support for retirees and others who depend on these benefits for their financial security.

The adjustment translates to approximately $50 more per month for the average retired worker beginning January. For beneficiaries who continue working while collecting Social Security,
understanding the updated earnings limits
is crucial for maximizing your benefits.

What Social Security Changes Mean for Working Beneficiaries

If you’re receiving Social Security retirement benefits before reaching full retirement age and still working, the
updated earnings limits
will increase to $22,320 in 2024. You can earn up to this threshold without affecting your benefits. For earnings above this limit, Social Security will temporarily withhold $1 for every $2 you earn.

Different rules apply if you’re reaching full retirement age during 2024:

• Your earnings limit increases to $59,520
• Only earnings before the month you reach full retirement age count
• Social Security withholds $1 for every $3 earned above the limit
• After reaching full retirement age, no earnings limits apply

Navigating Social Security Benefits While Working

Many beneficiaries find these Social Security rules challenging to navigate. Remember that any benefits withheld aren’t permanently lost – they’re added back to your monthly payments
after you reach full retirement age.

The most significant advantage comes when you reach full retirement age. At this point, earnings limits disappear completely, allowing you to:

• Work and earn any amount
• Receive your full Social Security benefits
• Plan your retirement with greater flexibility
• Maximize your overall income

Additional Social Security Adjustments for 2024

The Social Security tax structure is also changing. Maximum taxable earnings will increase to $168,600, up from $160,200 in 2023. This adjustment primarily affects higher-income workers and their employers who pay into the Social Security system.

For disability beneficiaries, Social Security has updated the substantial gainful activity thresholds:

• $1,550 per month for non-blind individuals
• $2,590 per month for blind individuals

These Social Security disability thresholds determine eligibility for benefits while working.

Social Security benefits remain a crucial component of financial wellbeing for millions of Americans. If you have questions about your specific eligibility or how these adjustments might affect your situation, contacting a Social Security representative can provide personalized guidance tailored to your needs. For more details on the
cost-of-living adjustment (COLA), visit the official Social Security website.