Millions of Americans Will See An Increase In Social Security Checks, But At What Cost?

Marking the third consecutive year, 2024 is kicking off a favorable raise in social security check payments, thanks to inflation and tax adjustments.

According to the Social Security Administration, benefits will increase by 3.2% based on this year’s cost-of-living adjustment. But this is a much smaller increase than the whopping 8.7% and 5.9% upsurge seniors and other beneficiaries received in 2023 and 2022, respectively. The old-age and disability program said it intends to help alleviate the burdens of the high cost of living expenses. 

The new raise will hike the average monthly Social Security and Social

Security and Supplemental Security Income (SSI) benefits, which were about $1,711 and $674 in November, the SSA reported. Beginning in January, the average retirement benefit will increase by about $50 monthly. Recipients receiving Social Security and/or Supplemental Security Income (SSI) will see the increase reflected in their checks starting Jan. 10 and throughout the year.

For those who receive the maximum Social Security payout, their monthly checks will spike to $4,873 in 2024, according to the agency. This is an additional $170 monthly per paycheck compared to the current year. 

While these changes boost recipients’ monthly

ontent-ad2"> income, experts point out the misconception that Social Security recipients don’t pay taxes. But more Social Security beneficiaries could see a higher federal income tax bill in 2024 if they earn above a threshold that hasn’t changed since 1984. Experts emphasize that inflation is a significant contributor to the jump in taxes. As a result, in 2023, workers paid Social Security taxes on income up to $160,200, CBS News reported, and higher earners are likely to face higher Social Security taxes. 

For instance, individual taxpayers who earn between $25,000 and $34,000 in benefits may have income tax on up to 50% of their benefits. Over $34,000

and up to 85% of benefits may be taxable. On the other hand, joint filers who earn between $32,000 and $44,000 may pay taxes of up to 50% of benefits. Over $44,000 and up to 85% of your benefits may be taxable.

The Senior Citizens League (TSCL), a nonpartisan senior advocacy group, estimated a 3.2% increase. They warned that the increase still won’t maintain beneficiaries’ living costs.

“Because retiree costs are rising at a far more rapid pace than the COLA raises benefits, this study found that an SSI benefit of $1,969.80 per month in 2023 would have been required,” the league, as reported in a previous story by BLACK ENTERPRISE.

In 2021, nearly 11.2 million older adults were cost-burdened, as reported in a new study by the Joint Center for Housing Studies of Harvard University on housing America’s older adults. They spent more than 30% of household income on housing costs.