January 7, 2025

The elderly, depositors benefit from the increase in the cost of living in 2024

Inflation is still at historic lows, but in 2023 a slight increase means retirement will get a small raise, and workers will be able to save more money in tax-favored retirement accounts.

Social Security beneficiaries will get 2% cost of living adjustment of earnings this year – the largest increase since 2022. This raises the retirement of $ 27 personnel the average monthly expenditure of $ 1,404. It was the largest monthly retirement pay full retirement age (currently 66) is $ 2788, an increase of about $ 100

However, there is a good chance that most, if not all, of the increase will be more high consumption of health care premiums, in most cases by the Social Security deduction Huiqian hit your bank account. Basic medical insurance may bË $ 1,342,018 per month, or more than $ 2 more a month if you want the 2017 average premium paid by most registration $ 25, will leave only the average rise in social security.

Increased by $ 500 for those retirement savings plans are still saving for retirement, provided for the 401 (k) contribution limits and other employers. The maximum contribution to health savings accounts will go up, too. Traditional and Roth IRA limit will remain at $ 5,500 ($ 6,500 if you are 50 years or older).

However, for high-income workers, there is a drawback inflation. Workers will pay Social Security taxes on earnings up to $ 128,400 to $ 127,200 in 2023. That year who earn more than 2017 workers will limit the device up to an additional $ 93 Uncle Sam dining table.