According to several studies, there is a possibility that Social Security benefits will increase again in 2024. However, these Social Security and SSI payments may not go up as much as they did this year. This is due to different factors that can have an impact on the U.S. economy.
Even though it's still too early to draw conclusions, it's important to be prepared. In this way, you can have a clear idea about the management of your finances for the next year. As a result, this will allow you to prevent financial problems. Here at The Look, we will tell you everything that is known so far about the possible increase.
Why will there be an increase in Social Security check and SSI in 2024?
There are several reasons why Social Security and SSI checks are expected to increase in the coming year. Knowing each of them will help you better understand the fluctuations that will occur with these benefits. Below, we will mention the main reasons for these increases:
- Social Security's cost-of-living adjustment (COLA) and the increase in the government's consumer price index (CPI).
- Demographic changes and the aging of the population, as more and more citizens receive Social Security and SSI benefits.
- Progressive increases in basic and essential services, such as health care and housing. This results in a higher cost of living for Social Security and SSI beneficiaries.
- Income subject to FICA taxes will also increase. Therefore, the income for both programs is going to be higher.
- There are different public policies that seek to drive changes in the way social security resources are allocated.
How will increases in Social Security checks and SSI affect beneficiaries?
These increases will have a positive impact on the beneficiaries of both programs, since they will begin to receive more money. As a result, they will have a greater economic capacity to meet all their daily expenses. Then, the poverty rate can be reduced and the quality of life in the country improved.
On the other hand, the increase can also help stimulate savings for all beneficiaries. This will allow them to better prepare for their financial future, especially when they cannot continue working. This will reduce many social problems and inequality in the most vulnerable communities.
However, there may also be some problems due to the increase in these checks. In particular, because there is a possibility that the way in which they allocate social security resources will change. However, this is something that is not confirmed at the moment.
What does the increase in the Social Security check and SSI mean for the economy?
Increasing the Social Security check and SSI could have both negative and positive effects on the U.S. economy. Especially since this can help stimulate consumption and increase demand in some sectors. Therefore, local economies could improve in a natural way.
On the other side of the coin, there is a chance that the program will end up hurting. Especially if revenues do not keep up with expenses, creating problems to provide benefits to all citizens.