What are the 2024 Changes to Social Security?
Have your question answered on the Money Wisdom Question Series!
Today’s question is all about changes when it comes to Social Security now that we’re into the 2024 tax year.
Well, folks, there are a lot of changes. You don’t need me to tell you that the Social Security Administration is under a lot of stress right now. Well, why is that? We are at the peak of the Baby Boomer wave, which means there are 14,000 people turning 65 every single day. This is a trend that’s going to continue for the next 10 years or more.
I tell you this because there are going to be changes coming out almost every single year when it comes to Social Security. So, let’s just hit on two of them.
Cost-of-Living Adjustment (COLA)
Now that we’re into 2024, the most common change that people have questions about is the good old Cost-of-Living Adjustment, or COLA. What is it? It’s the IRS’s way to acknowledge the fact that the world we live in is just getting more and more expensive every day.
As a result, if you’re collecting Social Security, you’re going to notice your check probably just got a little bit bigger. That number has been as high as 14 to 15% in previous years. Last year, it was over 8%. For 2024, the COLA is just over 3% – it’s 3.2%. So, you’ll see that raise in your accounts.
Income Subject to Social Security Taxes
The last thing I want to talk about is the earnings threshold at which Social Security taxes are being taken out of your paycheck. If you’re still working, they’ve actually increased those limits. It used to be a pretty low limit where some high-income earners were only paying into the system on a very small amount of their income. They’ve increased that limit to $168,000. So, if you’re working, you pay taxes into the Social Security system on dollars up to $168,000 in income.
So, a lot of changes are coming. I’d anticipate there are going to be more coming down the pike as the years go on, but those are two that you need to be aware of now that we’re into 2024.
Information presented here is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.
Related Resources
-
What’s the Best Way to Manage an Inheritance?
While often an emotional process, receiving an inheritance can also be a life-changing event, if handled properly. Without thoughtful planning, however, an influx of mismanaged funds can lead to c… -
Should I Save for Retirement in a 401(k), an IRA, or Both?
With pension plans becoming increasingly rare, the responsibility of saving for a 20- to 30-year retirement now rests largely on your shoulders. This new reality can put a lot of pressure on how a… -
Can I Still Qualify for Spousal Benefits If I’m Divorced?
Nearly half of Americans are surprised to learn that you can receive Social Security spousal benefits even if you’re no longer married. That’s right, you can still maximize your retirement income … -
What Is Sequence of Returns Risk?
Picture this: two individuals retire at the same time. They have the same amount of money saved and withdraw the same amount from their nest egg. Ten years later, one retiree still has a good a… -
What Should I Do with My Tax Refund?
According to IRS filing data, the average tax refund is about $350 higher this season compared to last year. But no matter the size of your refund, what you do with it could have a lasting impact … -
My Mother Hasn’t Done Any Estate Planning – How Can I Help?
Estate planning is an essential part of securing your financial future and protecting your loved ones. Yet, 56% of Americans still don’t have any type of estate plan: no will, trust, power of atto… -
Podcast Episode 449: 4 Ways to Prepare for Next Year’s Tax Season
Prefer to watch? Click here to watch and listen on YouTube. Now that tax season is over, it’s a great opportunity to reflect on your current situation and plan ahead. During your review, you mi… -
Should My Partner and I Retire at the Same Time?
Many couples dream of retiring together, but it isn’t always the best—or most common—financial strategy. According to a 2024 financial report, only 11% of retired couples leave their careers at th… -
What Is a Backdoor Roth IRA and Is It Right for Me?
If you earn too much to contribute directly to a Roth IRA, there may still be a way to save tax-free for retirement. Financial professionals commonly refer to this strategy as a “backdoor Roth IRA… -
What Questions Should I Ask My Employer About My Benefits?
Whether retirement is decades away or right around the corner, it’s important to know what benefits your employer offers. A 2025 Goldman Sachs survey found that those with an employer-sponsored re…
-
Laura H.Laura H. is a client of Johnson Brunetti and received no compensation for their statement.
“Your corporate values and mission have stayed constant which we’d say is the primary reason we are so satisfied. We believe that mission should never change.”
Testimonials received in response to Johnson Brunetti survey conducted in 2024. Please click here for a description of the survey and the overall results.
-
John L.John L. is a client of Johnson Brunetti and received no compensation for his statement.
“We are extremely please with J&B. Referring back to our one word, Family, we trust your firm, advisors, and services as we would a member of the Family. Thank you for everything!”
Testimonials received in response to Johnson Brunetti survey conducted in 2024. Please click here for a description of the survey and the overall results.
-
Joe D.Joe D. is a client of Johnson Brunetti and received no compensation for his statement.
“Your model is working well, continue to keep your focus on your clients. The podcasts are an effective way of communicating information and real life stories. Your business is supporting your clients’ many different real life stories.”
Testimonials received in response to Johnson Brunetti survey conducted in 2024. Please click here for a description of the survey and the overall results.
-
Jackie L.Jackie L. is a client of Johnson Brunetti and received no compensation for her statement.
“I love how everyone in the company makes us feel. Like we are one big happy family. I wouldn’t change anything! “
Testimonials received in response to Johnson Brunetti survey conducted in 2024. Please click here for a description of the survey and the overall results.
-
Christine Q.Christine Q. is a client of Johnson Brunetti and received no compensation for her statement.
“Your services are exemplary and greatly appreciated by my husband and myself to live out our retirement years feeling safe and secure. Thank you!”
Testimonials received in response to Johnson Brunetti survey conducted in 2024. Please click here for a description of the survey and the overall results.
-
Barbara S.Barbara S. is a client of Johnson Brunetti and received no compensation for her statement.
“We are very happy with Johnson Brunetti. It has really taken a load off our shoulders. Thank you.”
Testimonials received in response to Johnson Brunetti survey conducted in 2024. Please click here for a description of the survey and the overall results.
