As we near the new year, Social Security Disability Insurance (SSDI) recipients have reason to be optimistic. The Social Security Administration (SSA) has announced a 3.2% increase in SSDI benefits for 2024. This adjustment aims to help with rising living costs and make it easier for those with disabilities to manage their expenses. Here’s what you need to know about this change and its impact.
What is SSDI?
Social Security Disability Insurance (SSDI) provides financial support to people with disabilities who have worked and paid Social Security taxes. If you can’t work due to a disability, SSDI helps cover your living expenses.
2024 SSDI Increase Details
Benefit Adjustments
For 2024, SSDI benefits are set to rise by 3.2% due to inflation. Here’s a breakdown of the changes:
- Maximum Monthly Benefit: The highest amount a disabled worker can receive will increase from $1,489 in 2023 to $1,537 in 2024.
- Disabled Widows/Widowers: Their benefits will rise 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 increase from $1,847 to $1,906.
The exact amount you receive may vary based on your earnings history and other factors. The SSA will mail out letters in December 2023 with personalized benefit amounts.
When Will Payments Increase?
The new, higher SSDI benefits will start being paid from December 29, 2023. Make sure to check your account and SSA updates for the latest information on payment dates.
Tax Rates and Thresholds
While SSDI benefits are going up, the tax rates for workers and self-employed individuals will remain unchanged in 2024:
- Employees: 7.65%
- Self-Employed: 15.3%
However, the Maximum Taxable Earnings limit will increase to $168,000. This is the highest amount of earnings that Social Security taxes will be applied to.
Understanding COLA
Cost-of-Living Adjustments (COLA) ensure that Social Security benefits keep pace with inflation. The SSA reviews price changes every October to determine the COLA. For 2024, the COLA will be 3.2%, helping beneficiaries maintain their purchasing power despite rising costs.
Historical COLA Rates
- 2022: 5.9% increase
- 2023: 8.7% increase
These adjustments are important for keeping benefits from losing value over time due to higher living costs.
The 2024 SSDI increase is positive news for disabled workers and their families. With a 3.2% COLA adjustment, monthly payments will be higher, making it easier to cover living expenses. Staying informed about these changes will help you make the most of your SSDI benefits.
1. What is SSDI?
SSDI provides financial support to people with disabilities who have worked and paid Social Security taxes.
2. How much will SSDI benefits increase in 2024?
SSDI benefits will increase by 3.2% in 2024.
3. When will the new SSDI payments start?
The new SSDI payments will begin on December 29, 2023.
4. Will tax rates change in 2024?
No, tax rates will stay the same, but the Maximum Taxable Earnings limit will increase to $168,000.
5. What is COLA?
COLA stands for Cost-of-Living Adjustment, which helps Social Security benefits keep up with inflation.
