Social Security is a government-run program designed to provide financial assistance to various groups of people. It primarily targets the elderly, individuals who have lost a family member (survivors), and those who are unable to work due to a disability. This program aims to ensure these individuals have a steady stream of income to help cover their monthly expenses.
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Fixed $440 Monthly Boost for Social Security
The Social Security Administration has announced that in 2024, Social Security benefits and supplemental security income will see a 3.2 per cent increase. This means that some recipients could see their Social Security increase by $440 per month, marking one of the largest increases in Social Security to date.
Eligibility Criteria for Social Security
To qualify for Social Security benefits, an individual typically must have worked and paid taxes for at least 10 years. The benefits become available once the individual reaches the age of 62. However, if a person chooses to delay receiving their benefits until they reach the age of 70, the monthly amount they receive will be higher. The calculation of these benefits considers the individual’s Average Indexed Monthly Earnings (AIME) and their 35 highest-earning years.
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Current State of Social Security Benefits
In 2023, Social Security benefits were provided to over 70 million Americans. The benefits increased, with the monthly amount rising from $1,681 to $1,827. However, the exact increase was dependent on the recipient’s circumstances. The maximum amount of Social Security benefits ranged from $2,572 to $4,555 per month.
Upcoming Changes to Social Security
The government plans to increase the federal rate of benefits. Social Security benefits are expected to increase by 8 percent per year beyond the full retirement age, which could translate into an additional $400 per month for some recipients.
Impact on Individuals
This increase in benefits will be particularly beneficial for individuals who are 62 years or older, have a disability, or are blind and do not have sufficient working credits to meet their needs. The potential increase of up to $440 per month will be dependent on the individual’s cost-of-living adjustments.
Future Projections for Social Security
According to the federal corporation, the Social Security Administration plans to increase the maximum benefits for retirees to $3,822 per month in 2024, up from $3,627 in the current year. Beneficiaries who receive the average benefits will be granted $1,907. This represents an average increase of 3.2 per cent. Therefore, individuals who receive the maximum pension, disability, or retirement social security could see a monthly increase of approximately $440 in their benefits.
Concluding Remarks
Social Security benefits are determined based on an individual’s contributions. Therefore, a recipient who contributed for around 10 or more years will be eligible for these benefits. These benefits are subject to change each year, and the Federal Government issues payments on a fixed schedule to each beneficiary. In 2024, individuals eligible for retirement could receive maximum benefits of $59,520 per year, depending on the limit.
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Mahesh Sen, a seasoned student advisor, writes informative articles on educational topics. Mahesh gives valuable insights and practical advice to guide students through their academic challenges and milestones.