Important changes to Social Security and Medicare in 2024: If you are retired or nearing retirement, there are significant Social Security and Medicare changes that will take place in 2024 that you should be aware of.
With the cost of living revision, monthly social security will increase by a mere 3.2% in 2023, as inflation rates persistently decline.
According to Bill Sweeney, senior vice president of government affairs at AARP, the increase is somewhat disheartening, particularly in comparison to the forty-year high of 8.7% observed in 2022.
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“This is probably not enough for them to be able to feel comfortable and confident about their savings,” commented Sweeney.
In addition, Medicare and Part B standard premiums are experiencing another increase. The percentage of Medicare expenditures allocated to physician visits and other ambulatory care has increased by 6%.
Those who are not yet retired but are thinking about accumulating savings, however, have good tidings.
Those aged 50 and older are now eligible to make contributions of up to $30,500 to their 401(k) or an alternative deferred compensation plan.
“That’s a little bit of extra money that you can put away in your retirement, which is a great way to save and get caught up before you retire,” Sweeney stated.
As of the second half of the year, the complete retirement age will have increased from 65 to 67 years and eight months, forty years after Congress voted to gradually increase it.
“We urge people to think about what the right age is to start claiming social security to maximize how much money they can get,” according to Sweeney.
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