Social Security Benefits to Rise Modestly in 2024 Due to Inflation

Social Security benefits will increase by 3.2% in 2024 due to inflation, costing the government about $47 billion more.

The 2024 adjustment is more modest than the 8.7% increase in 2023.

The adjustment is in line with the Federal Reserve's inflation expectations.

Higher benefits are not unexpected, as a COLA in this range was already projected.

The maximum earnings subject to Social Security tax will increase from $160,200 to $168,600.