Social Security Disability Insurance (SSDI) is a crucial program that provides financial help to people who are disabled and have previously paid Social Security taxes.
With the rising cost of living, the benefits you receive from SSDI are getting a boost in 2024. This article will explain the upcoming changes to SSDI benefits, how they affect you, and important details you need to know.
What Is SSDI?
SSDI, managed by the Social Security Administration (SSA), offers financial support to individuals who are unable to work due to disability. To qualify, you need to have a sufficient work history and have paid Social Security taxes.
If you meet these requirements, you will receive monthly payments from the government. In addition to helping the disabled individual, these payments may also support certain family members.
Changes and Expected Increases in 2024
Starting in 2024, SSDI payments will increase by 3.2% due to the Cost-of-Living Adjustment (COLA). This adjustment ensures that benefits keep pace with inflation. Here’s a breakdown of the expected payments:
- Maximum Monthly Payment for Disabled Workers: $1,537
- Disabled Widow(er): $926
- Aged Widow(er): $1,775
- Spouse of Retired Worker: $913
- Retired Worker: $1,906
The exact amount you receive may differ based on various factors. To find out your specific payment amount, check your My Social Security Account.
When Will Beneficiaries Be Notified?
The SSA will send out letters in December 2023 to inform beneficiaries about the new benefit amounts. You can also view your COLA notice in the message center of your My Social Security account.
Early Payments
Some beneficiaries may see the increased payments as early as December 29, 2023. Approximately 71 million Americans enrolled in Social Security benefit programs will receive these enhanced benefits starting in 2024.
Tax Rates and Thresholds
For 2024, the tax rates for employees and self-employed individuals remain unchanged. Employees will continue to pay a 7.65% tax rate, while self-employed individuals will pay 15.3%. The Maximum Taxable Earnings threshold for 2024 is set at $168,000.
What Is COLA?
COLA, or Cost-of-Living Adjustment, is a mechanism to increase Social Security benefits to keep up with inflation. This adjustment helps ensure that the purchasing power of benefits doesn’t decrease over time. In October 2023, the SSA announced a 3.2% COLA for 2024.
Historical COLA Adjustments
- 2022: 5.9% increase, resulting in $1,358 per month for disabled workers.
- 2023: 8.7% increase, resulting in $1,483 per month for disabled workers.
The SSDI increase for 2024 is designed to help beneficiaries manage the rising cost of living. Make sure to check your My Social Security account for detailed information about your benefits and stay updated on the changes.
What is SSDI?
SSDI provides financial support to people with disabilities who have paid Social Security taxes and have a sufficient work history.
Why are SSDI payments increasing in 2024?
Payments are increasing by 3.2% due to the Cost-of-Living Adjustment (COLA) to keep up with inflation.
When will I find out about my new SSDI payment amount?
You will receive a letter from the SSA in December 2023, and you can also check your COLA notice in your My Social Security account.
Will the tax rates for Social Security change in 2024?
No, the tax rates will remain the same. Employees will pay 7.65%, and self-employed individuals will pay 15.3%.
What is COLA?
COLA stands for Cost-of-Living Adjustment, which increases Social Security benefits to match inflation and maintain their purchasing power.
