2024 Social Security Changes

November 13th, 2023

2024 Social Security
Find out how your benefits will change in the upcoming new year.

1. Average Retirement Benefits

An 3.2% cost of living increase for Social Security retirement benefits and SSI payments begins with December 2023 benefits (payable in January 2024).

Starting January 2024

Average Benefits – All Workers:

  • 2024: $1,907/mo (+$80)
  • 2023: $1,827/mo

Maximum Benefits for Workers Retiring at Full Retirement Age:

  • 2024: $3,822/mo (+$195)
  • 2023: $3,627/mo

Tip: Increase your Social Security retirement benefits by 5-8% per year when you delay applying until you’re age 70.

2. Social Security Revenues & Expenditures

Revenue Sources = $1.22 trillion

  • 3.9% – Taxation of benefits
  • 5.4% – Interest
  • 90.7% – Payroll taxes

Expenditures = $1.24 trillion

  • 0.6% – Administrative expenses
  • 0.4% – Railroad Retirement financial interchange
  • 99.0% – Benefit payments

SOURCE: 2023 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds, Table II.B1.

 3. 2024 Social Security & Medicare Tax Rates

The below tax rates are a combination of 6.2% for Social Security and 1.45% for Medicare. There is also a 0.9% Medicare wages surtax for those with wages above $200,000 single ($250,000 joint filers) that is not reflected in these figures.

If you work for someone else, your employer pays 7.65% in taxes.

If you work for someone else, you pay 7.65% in taxes.

If you’re self-employed, you pay 15.3% in taxes.

Item 2024 2023 Change
Maximum amount you may pay in Social Security taxes: $10,453.20 $9,932.40 +$520.80
Maximum earnings amount Social Security will tax at 6.2%: $168,600.00 $160,200.00 +$8,400.00

Social Security Facts:

  • 182+ million people work and pay Social Security taxes
  • Social Security has provided financial protection for Americans since 1935

 Social Security Payments Explained:

  • Social Security (SS) retirement benefits are for people who have paid into the Social Security system through taxable income.
  • Social Security Disability (SSD or SSDI) benefits are for people who have disabilities but have paid into the Social Security the system through taxable income.
  • Supplemental Security Income (SSI) benefits are for adults and children who have disabilities, plus limited income and resources.

Maximum SSI Payments:

Filing Status 2024 2023 Change
Individual $943/mo $914/mo + $29
Couple $1,415/mo $1,371/mo + $44


How does Social Security work?

  • When you work, you pay taxes into Social Security.
  • The Social Security Administration uses your tax money to pay benefits to people right now.
  • Any unused money goes into Social Security trust funds and is borrowed by the government to pay for other programs.
  • Once you retire, you receive benefits.

How to qualify for retirement benefits:

When you work and pay Social Security taxes, you earn credits toward benefits. The number of credits you need to earn to receive benefits depends on when you were born.

  • If you were born in 1929 or later, you need 40 credits (10 years of work) to receive retirement benefits.
  • You receive one credit for each $1,730 of earnings in 2024.
  • You can receive 4 credits maximum per year.

Did you know you can check your benefits status before you retire?

  • You can check online by creating a my Social Security account on the SSA website. If you don’t have an account, you’ll be mailed a paper Social Security statement 3 months before your 61st birthday.
  • This statement shows your year-by-year earnings. It also estimates the retirement, survivors and disability benefits you and your family may be able to receive now and in the future.
  • If it doesn’t show earnings from a state or local government employer, contact them. The work may not be covered within Social Security.

Sources: SSA.gov

Questions about Social Security and the 2024 benefit changes? We are more than happy to answer any questions at dpcpa.com/contact.