In 2024, Social Security Disability Insurance (SSDI) benefits are set to increase due to a Cost-Of-Living Adjustment (COLA). If you receive SSDI, this adjustment will affect your monthly payments. Here’s a detailed look at the changes, the expected increase in SSDI payments, and other important information.
SSDI Increase 2024
Social Security Disability Insurance (SSDI) helps people with disabilities who have paid enough Social Security taxes. The SSDI program, run by the Social Security Administration (SSA), provides monthly payments to eligible individuals.
In 2024, SSDI benefits will rise due to a 3.2% COLA increase. This adjustment reflects the increase in the cost of living in the United States, ensuring that SSDI payments keep up with inflation.
Changes and Expected Increase in SSDI Payments in 2024
For 2024, the maximum SSDI benefit is set at $1,537 per month, up from $1,489 in 2023. This increase is based on the 3.2% COLA adjustment. However, this is an average figure; the exact amount you receive depends on your individual situation and how well-insured you are.
The SSA will send out updated benefit amounts to all beneficiaries in December 2023. If you are receiving SSDI, check your My Social Security account to view your new benefit amount and any changes.
SSDI Benefit Amounts for 2024
Here’s a summary of the SSDI benefit increases for 2024:
- Disabled Worker: Increased from $1,489 to $1,537 per month (an increase of $48).
- Disabled Widow(er): Increased from $897 to $926 per month (an increase of $29).
- Aged Widow(er): Increased from $1,720 to $1,775 per month (an increase of $55).
- Spouse of Retired Worker: Increased from $885 to $913 per month (an increase of $28).
- Retired Worker: Increased from $1,847 to $1,906 per month (an increase of $59).
Tax Rates and Maximum Taxable Earnings
Although SSDI benefits are increasing, the tax rates for employees and self-employed individuals will remain the same in 2024. Employees will pay a 7.65% tax rate, while self-employed persons will pay a 15.3% tax rate.
The Maximum Taxable Earnings threshold for 2024 is set at $168,000. This means that only earnings up to this amount are subject to Social Security taxes.
What is COLA?
COLA stands for Cost-Of-Living Adjustment. It is used to adjust Social Security benefits to keep up with inflation. The SSA announced a 3.2% COLA increase for 2024 on October 12, 2023. This adjustment ensures that the purchasing power of SSDI benefits does not decrease due to inflation.
The COLA adjustment is made each October for the following year. For example, in 2022, the COLA was 5.9%, and in 2023, it was 8.7%. These adjustments help maintain the real value of Social Security benefits over time.
The SSDI increase for 2024 is an important adjustment designed to help beneficiaries keep up with rising costs of living. While the benefit amounts will go up, the tax rates and maximum taxable earnings will remain unchanged. Regularly check your My Social Security account for updates on your benefit amount and stay informed about future COLA adjustments to manage your finances effectively.
1. What is the SSDI increase for 2024?
The SSDI benefit will increase to a maximum of $1,537 per month in 2024, up from $1,489 in 2023, due to a 3.2% COLA adjustment.
2. When will I receive information about my new SSDI benefit amount?
The SSA will send out letters in December 2023 with details about the new benefit amounts for 2024.
3. How does the COLA affect my SSDI payments?
COLA adjusts SSDI payments to keep up with inflation, ensuring your benefits maintain their purchasing power.
4. Will the tax rates for Social Security change in 2024?
No, the tax rates for employees and self-employed individuals will remain at 7.65% and 15.3%, respectively.
5. What is the Maximum Taxable Earnings threshold for 2024?
For 2024, the Maximum Taxable Earnings threshold is $168,000.
