"2024 Social Security Update: Impending Changes and Increased Benefits Explained"
Originally Published 2 years ago — by Yahoo Finance
In 2024, Social Security will undergo significant changes that will affect both recipients and higher-wage earners. Benefits will increase by 3.2%, and the income threshold for retirees working before full retirement age will rise, allowing them to earn more without affecting their benefits. For higher-wage earners, the Social Security wage cap will increase from $160,200 to $168,600, meaning they will pay taxes on an additional $8,400 of income. This change will impact self-employed individuals the most, as they must cover the entire tax increase, while salaried employees will share the burden with their employers. The system's fairness is debated, but the wage cap also influences benefit calculations, which some argue balances the impact. Lawmakers continue to discuss further changes to the wage cap.
