monthly, The Social Security Administration makes millions of payments to its beneficiaries, Most of them are retired workers, disabled or people with limited resources.
It is possible to pay part of the monthly premium for Old age, survivors and disability insurance trusts. However, this may Funds will dry up between 2033 and 2035 which one would have Benefits are expected to be cut by up to 24 percent by 2033, affecting all beneficiaries, according to experts on the issue.
To avoid catastrophe and to preserve the purchasing power of those who receive monthly SSA payments, President Joe Biden has plans to boost the OASDI fund. But when it comes to fundraising efforts, It means that other aspects will also change.
Here are the most important changes and how they affect you.
4 big Social Security changes for 2024 and how they might affect you
As is customary, SSA makes cost of living adjustments based on the consumer price index for urban salaried and office workers from the third quarter of the previous year to the third quarter of this year.. This allows the government to ensure payments match current inflation, avoiding purchase losses for beneficiaries.
However, the new plan COLA price hikes will be based on senior consumer price indexthere is a more specific approach When measuring the needs of older people.
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The new plan also proposes: Raise the payroll tax and tax revenue cap beyond $400,000. The law now stipulates that: Only income less than $160,200 is taxed.
Primary Insurance (PIA)
Similarly, there are plans to: Increase your primary insurance limit (PIA) This is a measure of how much a given beneficiary would receive based on age at claim and median income. The White House intends to increase the PIA by 1 percent each year until it reaches 100 percent cumulatively. Thus, the PIA he is 78-82 years old.
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Increased minimum benefits for lifetime workers
What Low Wage Workers Get Minimum benefits no matter how much you earn while working. By 2023, this amount will be Equivalent to $12,402 per year or $1,033 per month. Biden’s proposal would raise minimum benefits This means an increase of $500 per month for individuals.
President Biden’s plan still a suggestion, So Congressional approval is required for the above changes to become a reality.