Spousal Social Security Benefit Set to Increase in 2024: COLA Boosts Retiree Checks, but Disparities Remain
This increase extends beyond retired workers, as individuals claiming benefits on a worker’s record, including spouses, will also witness a growth in their checks.
Retired individuals are set to receive an above-average boost in their spousal Social Security benefits, thanks to the latest cost-of-living adjustment (COLA)
The average spousal social security benefit is poised to increase, with the size of the COLA being determined by the 3.2% rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers in 2023. While the average retired worker will experience a $59 increase in their monthly benefits, spousal benefits will see a $28 rise.
This discrepancy in benefit increases is due to the calculation of spousal social security benefits based on the primary insurance amount (PIA) of the qualifying worker. The maximum spousal benefit is half of the spouse’s PIA, potentially leading to variations in benefit amounts.
Early claiming of spousal social security benefits can result in a permanent reduction in monthly benefits
Despite concerns about the adequacy of Social Security COLAs, there is currently no indication of Congress revisiting the calculation method. For individuals feeling that Social Security checks may not be sufficient, exploring other government benefits like Supplemental Security Income (SSI), Supplemental Nutrition Assistance Program (SNAP), Medicaid, and affordable housing programs is recommended. Creating a financial plan based on 2024 Social Security estimates and seeking information from the Social Security Administration can help individuals make informed decisions about their financial future.
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