2024 Changes Affecting Senior’s Finances

When families come to Atlanta Seniors Real Estate to discuss selling a home, buying a new home, or searching for a senior living or retirement community, one of the first discussions we have is about finances. That conversation will help guide decisions and illuminate the choices they have.

2024 has brought with it financial changes that retirees will want to be aware of — changes in Medicare, Social Security, taxes, retirement plan contributions and more.

AARP looks at some of the changes in a recent article which looks at the points below.

  1. Social Security – The cost-of-living adjustment will raise monthly payments by 3.2% and the average retirement benefit will climb nearly $60 a month. (read more about Social Security changes here)
  2. Medicare – Standard premiums for Medicare Part B are seeing a 6% increase to $174.70 a month and the annual deductible climbs to $240. (read more about Medicare changes here)
  3. Retirement Plans – The contribution limit went up $500 so seniors can now put up to $8,000 into an IRA for 2024 including a $1,000 catch-up contribution.
  4. Required Minimum Distributions – It used to be that Roth IRAs were not subject to the required yearly withdrawals while the owner is alive but now that exception will also apply to Roth 401(k) and 403(b) accounts. The age for RMDs went up to 73 last year.
  5. Standard Tax Deductions – If you or your spouse is 65 or older, he deduction for a single filer or head of household is up $1,000 from 2022 and up $200 for couples filing jointly.
  6. Full Retirement Age – The Social Security full retirement age has been gradually increasing and will reach 66 and 8 months later this year.

>>Click here to read the article in its entirety on AARP.org.