Who will receive up to $4,873 a month from Social Security in 2024?
Some Social Security beneficiaries will receive up to $4,873 in 2024 thanks to the 3.2% COLA increase,. Who are qualified to receive this amount?
Every year, the Social Security Administration (SSA) makes an increase to payments to beneficiaries through the Cost of Living Adjustment (COLA), with the objective of matching monthly checks with current inflation so as to avoid the loss of purchasing power when prices are high.
The increase to the COLA is calculated based on the Consumer Price Index for Wage Workers in Urban Areas and Administrative Workers (CPI-W) for the third quarter of the current year and is compared with the figures for the third quarter of the previous year. The percentage difference between one year and the next will be the increase to the COLA of the following year. According to the official statement from the SSA, the increase to the COLA for 2024 will be 3.2%.
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With this hike, the average payment for a retired worker will rise from $1,848 to $1,907 per month, while the benefit for retired couples will increase from $2,939 to $3,033. The maximum benefit will have an increase from $4,555 to $4,873, but who is eligible to collect this amount?
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Who will receive up to $4,873 a month from Social Security in 2024?
The exact amount a beneficiary will receive depends on several factors, such as the number of years worked, the salary received and the amount of taxes paid to Social Security during that same work period. The age at which retirement is requested is also one of the most important to consider because the longer you postpone your retirement, the greater the benefit you will receive.
By 2024, the maximum benefit to be received from Social Security will increase to $4,873 and will be available to those who wait until age 70 or later to request their retirement.
However, this is not the only requirement, since interested parties must also have worked for a minimum period of 35 years. They must have also earned the salary cap for each of those 35 years and paid payroll taxes to Social Security on the maximum taxable income in those 35 years. By 2024, the first $168,600 will be subject to those taxes.