Social Security Disability Insurance (SSDI) offers financial support to individuals with disabilities who have paid enough Social Security taxes on their earnings. Administered by the Social Security Administration (SSA), SSDI is a vital program for many Americans.
In 2024, SSDI benefits will increase due to a 3.2% Cost-of-Living Adjustment (COLA). This adjustment reflects the rising cost of living in the United States, ensuring that SSDI recipients maintain their purchasing power.
Payment Changes
SSDI benefits extend not only to the claimant but also to certain family members. If a claimant’s application is accepted, they receive monthly payments from the government. In 2024, disabled workers can receive a maximum monthly payment of $1,537, adjusted based on the 3.2% COLA.
The exact amount an individual receives depends on several factors, including how well they are “insured.” Therefore, actual payments can be higher or lower than the average amount. The SSA will send letters to all beneficiaries in December 2023 to inform them of their new payment amounts. Beneficiaries can also check their COLA notices in their my Social Security account.
Fact Sheet
The SSA has released a fact sheet detailing the maximum payment rates, tax rates, thresholds, and exempt amounts for various Social Security benefits in 2024. Notably, some beneficiaries may see increased payments as early as December 29, 2023. Approximately 71 million citizens enrolled in various Social Security benefit programs will experience increased benefits in 2024.
| Benefit | 2023 | 2024 | Increase |
|---|---|---|---|
| Disabled worker | $1,489 | $1,537 | $48 |
| Disabled widow(er) | $897 | $926 | $29 |
| Aged widow(er) | $1,720 | $1,775 | $55 |
| Spouse of retired worker | $885 | $913 | $28 |
| Retired worker | $1,847 | $1,906 | $59 |
While SSDI and other Social Security benefits will increase in 2024, tax rates for employees and self-employed individuals will remain unchanged. Employees will continue to pay a 7.65% tax rate, and self-employed individuals will pay a 15.3% tax rate. The Maximum Taxable Earnings threshold for 2024 is set at $168,000.
COLA
Cost-Of-Living Adjustments (COLA) ensure that Social Security benefits keep pace with inflation. Announced annually in October, COLA for 2024 is set at 3.2%. This adjustment increases the primary insurance amount (PIA) and, consequently, the benefits for recipients.
For instance, if a PIA is $1,924.50, a 3.2% COLA increases it to $1,986. In recent years, COLA adjustments have varied: 5.9% in 2022 and 8.7% in 2023. These adjustments help ensure that inflation does not erode the value of Social Security benefits.
SSDI provides essential support to individuals with disabilities, and COLA adjustments play a crucial role in maintaining the purchasing power of these benefits. With the 3.2% increase in 2024, beneficiaries can look forward to slightly higher payments, helping them manage the rising costs of living.
FAQs
When will SSDI payments increase?
SSDI payments will increase in 2024 due to a 3.2% COLA.
How much is the maximum SSDI payment in 2024?
The maximum monthly payment is $1,537 for disabled workers.
Will tax rates change in 2024?
No, tax rates for employees and self-employed individuals remain the same.
When will beneficiaries be informed about new payments?
SSA will send letters in December 2023 to inform beneficiaries.
How can I check my new SSDI amount?
Check your COLA notice in your my Social Security account.
