2024 Social Security benefits have changed: Read how
Feb 1, 2024, 10:06 AM | Updated: 10:39 am
SALT LAKE CITY — Retirees who rely on Social Security benefits for income may have noticed some changes this month.
CNBC reports Social Security benefits have gone up 3.2% due to an annual cost-of-living adjustment. That’s an increase of more than $50 per month on average.
The second change is your benefits might be reduced for starting early – between age 62 and your full retirement age.
If you also continue to work, you may face what’s known as an earnings test if you earn over a certain threshold.
Carmen Valverde-Gill is a financial planner for Edward Jones Investment in Cottonwood Heights. She said there are important things to consider when claiming benefits early.
“But remember social security covers two risks during retirement. One is inflation and the other one is if you live longer than expected,” Valverde-Gill said.
The last change is that social security benefit income may be subject to federal taxes.
A financial planner can walk you through your options to avoid a big bill at tax time.