Social Security Beneficiaries Receive 3.2% Increase in 2024
As we welcome 2024, beneficiaries of the Social Security Administration (SSA) can look forward to a 3.2% increase in their benefits. This adjustment is particularly impactful for those receiving Supplemental Security Income (SSI), with approximately 7.5 million SSI recipients already beginning to receive their enhanced checks as of December 29, 2023.
This increase raises the standard SSI payment for individuals to $943 per month, a significant rise from the $914 monthly payment in 2023. Similarly, couples on SSI will see their standard payment jump to $1,415 per month, up from $1,371 in the previous year.
However, beneficiaries should be cautious during months when two checks are issued within a single calendar month. This can inadvertently push them close to the $2,000 asset limit for individuals and $3,000 for couples - thresholds that have remained unchanged since 1989. Overreaching these limits can trigger overpayment notices and automatic withholding of benefits. This issue is particularly prevalent among those receiving paper checks.
Kate Vengraitis, a supervising attorney at Community Legal Services of Philadelphia, highlights the challenges this poses, especially for those without legal assistance. A proposed bipartisan bill seeks to alleviate these concerns by raising asset limits to $10,000 for individuals and $20,000 for married couples.
In addition, eligible SSI beneficiaries can also maintain up to $100,000 in ABLE accounts without penalty. These accounts are designed to aid people with disabilities through tax-advantaged savings. This legislative change could eliminate the existing marriage penalty and other complexities faced by SSI recipients.
JPMorgan Chase CEO Jamie Dimon, during a recent Senate Banking Committee hearing, emphasized the importance of this change. He pointed out how the current system discourages earning increases among SSI beneficiaries due to fear of losing benefits.
In summary, the 3.2% cost-of-living adjustment for SSI recipients in 2024 comes as a relief to many. However, it also brings attention to the need for reforming asset limits to better support beneficiaries.