Social Security remains a vital source of retirement income for Americans, with the program undergoing various adjustments in 2024 that affect beneficiaries. One significant change is the cost-of-living adjustment (COLA), which has been set at 3.2%, marking a decline from the previous year’s figure but still above the two-decade average of 2.6%.

This adjustment has brought the average Social Security retirement check to $1,864.52 a month as of March 2024.

Married couples have unique considerations when it comes to claiming Social Security benefits. With a significant portion of retirement income hinging on Social Security for many couples, strategies to maximize joint income are essential.

One such approach, known as the “split strategy,” involves one spouse, often the higher earner, delaying benefits until age 70, while the other starts claiming at their full retirement age or earlier.

Using online programs like Open Social Security can be invaluable in determining the optimal claiming strategy for a couple’s specific situation.

Furthermore, a lesser-known provision in Social Security regulations can impact spouses serving as caregivers for a child with disabilities.

If one spouse retires and begins receiving Social Security benefits, and they have a child who qualifies for Social Security Disability Insurance (SSDI), the caregiving spouse may also be eligible for spousal benefits, regardless of not having reached retirement age. This ‘loophole’ can provide significant additional income to the family.

Another change for 2024 is the end of a longstanding spousal rule that permitted switching between personal and spousal benefits to maximize the monthly payment. This rule now only applies to individuals who turned 70 on or before January 1, 2024.

The earnings test for seniors working while collecting Social Security benefits has also been updated.

The exempt amount has increased to $22,320, with $1 withheld for every $2 earned above this threshold until reaching full retirement age.

For high earners, the maximum amount of earnings subject to Social Security payroll tax has risen to $168,600.

Additionally, the Social Security Administration (SSA) has implemented changes to simplify overpayment rules, reducing the repayment amount to the greater of $10 or 10% of the beneficiary’s total monthly benefit, with a longer recovery period extended to 60 months and a more straightforward appeal process for beneficiaries.

It’s worth noting that the number of states taxing Social Security benefits has decreased to 10, with Missouri and Nebraska eliminating state income taxes on these benefits as of January 1, 2024. This change may lead to additional tax savings for beneficiaries in those states.

As Social Security continues to evolve, individuals and couples are encouraged to explore all available options to maximize their benefits and secure their financial future in retirement.

It is advisable to consult with a financial advisor or a special needs planning attorney, particularly for those navigating the complexities of caregiver benefits, to ensure optimal Social Security benefit planning.