Social Security Changes in 2024: What You Need to Know
- Author: Wilbert Raynor
- Posted: 2024-11-08
Social Security is evolving along with the economy and population. Retirees can anticipate several notable changes to the program in 2024 that will impact benefit calculations and eligibility.
While the core of Social Security remains the same, staying up-to-date with the details will help you make the most of your benefits.
Benefit Reductions Offset Longer Life Expectancy
Social Security benefits are calculated based on average lifespans so that the program can remain solvent as people live longer. As lifespans increase, monthly benefit amounts decrease slightly to account for the possibility of more years of payouts.
In 2024, benefit formulas will factor in the latest average lifespans, resulting in marginally lower payments for new beneficiaries. However, for most people, the difference will be small. Claiming at the optimal time is still the biggest factor in maximizing your monthly benefit.
Expanded Eligibility Means More Spouses Qualify
More divorced and widowed spouses will qualify for benefits based on their former partner’s work records beginning in 2024.
For example, spouses whose marriage lasted less than 10 years may become eligible for payments. Widowed spouses will also see expanded benefits.
Meet with your local Social Security office to understand exactly how much you may receive in spousal benefits. The additional income can provide financial security later in life.
Higher Earnings Limits Allow More Flexibility
Seniors who work while collecting Social Security will be permitted to earn more money before benefits are reduced. The new earnings limits go into effect in 2024, giving retirees more freedom to generate income without penalty. The specific limits depend on your age and benefit amounts.
Contact Social Security directly to learn how the updated limits will apply to you. With some advance planning, you can take advantage of the higher limits to earn extra money in retirement.
While 2024 brings some noteworthy changes to Social Security, the program remains a crucial source of income for many retirees. Stay up-to-date with the latest details, maximize your benefits by claiming at the optimal age, and make the most of new opportunities to generate income.
With some adjustments, you can ensure Social Security provides financial stability for years to come.
