As we approach the new year, many people who get Social Security Disability Insurance (SSDI) are excited about changes to their benefits. The Social Security Administration (SSA) has announced that there will be a 3.2% increase in benefits for 2024.
This means that people receiving SSDI will get more money each month to help with their living expenses. Let’s dive into what this change means and how it will affect SSDI recipients.
SSDI Increase for 2024
Social Security Disability Insurance (SSDI) helps people with disabilities who have worked and paid Social Security taxes. It gives financial support to those who can’t work because of their disability. For 2024, the SSA is increasing SSDI payments by 3.2% due to the rising cost of living in the United States.
Changes and Expected Increases
Thanks to the 3.2% Cost-of-Living Adjustment (COLA), SSDI payments will go up. Here’s how the benefits will change:
- Maximum Monthly Benefit: For 2024, the highest amount a disabled worker can get is $1,537 per month, up from $1,489 in 2023.
- Benefits for Disabled Widows/Widowers: Their monthly payment will increase from $897 to $926.
- Aged Widows/Widowers: Their benefits will go up from $1,720 to $1,775.
- Spouses of Retired Workers: Their monthly benefits will increase from $885 to $913.
- Retired Workers: Their benefits will rise from $1,847 to $1,906.
These amounts are averages, and what each person gets depends on their earnings history and other factors. The SSA will send letters in December 2023 with the new benefit amounts for everyone.
Payment Dates
The new, higher SSDI benefits will start being paid from December 29, 2023. Recipients should check their accounts and the SSA’s updates to stay informed about when they will get their payments.
Tax Rates and Thresholds
Even though SSDI benefits are going up, the tax rates for workers and self-employed people will stay the same in 2024:
- Employees: 7.65%
- Self-Employed: 15.3%
However, the Maximum Taxable Earnings limit will increase to $168,000 for 2024. This is the highest amount of earnings that Social Security taxes are applied to.
COLA
Cost-of-Living Adjustments (COLA) are made to make sure Social Security benefits keep up with inflation. Each October, the SSA announces the COLA based on how prices are changing. For 2024, the COLA will be 3.2%, so beneficiaries’ purchasing power will be maintained despite rising costs.
Historical COLA Rates:
- 2022: 5.9% increase
- 2023: 8.7% increase
These adjustments help ensure that Social Security benefits are not reduced by higher living costs.
The 2024 SSDI increase brings good news for disabled workers and their families. With a 3.2% COLA adjustment, monthly payments will be higher, making it easier to manage living expenses. Staying updated on these changes is important to get the most out of SSDI benefits.
What is the SSDI increase for 2024?
SSDI benefits will increase by 3.2% in 2024.
When will the new SSDI payments start?
The increased SSDI payments will begin on December 29, 2023.
How will the SSDI increase affect my monthly benefits?
The increase varies based on your earnings history and other factors, but you will see a higher payment starting in 2024.
Will the tax rates change in 2024?
No, the tax rates for employees and self-employed individuals will remain the same, but the Maximum Taxable Earnings limit will increase.
How is the COLA for SSDI determined?
The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to keep benefits in line with inflation.