4 Social Security Shakeups From Biden That Could Impact Your Wallet by 2024

Apply Payroll Tax on Income Over $400,000 Payroll tax is 12.4% on income under $160,200. OASI taxes are waived on earnings over that level. Biden intends to tax income beyond $400,000, leaving wages from $160,200 to $400,000 untaxed.

Adjust COLA Increase Calculations Every year, Social Security benefits are adjusted for inflation. The administration calculates this cost-of-living adjustment using the CPI-W.

However, this number may not reflect retired lifestyle and spending. Shifting COLA calculations to the Consumer Price Index for the Elderly won't fix Social Security's funding crisis. Yet it could boost retirement income for those who need it most.

Raise Primary Insurance The Primary Insurance Amount (PIA) determines how much Social Security payments you'll receive based on your age and Average Indexed Monthly Earnings. Healthcare costs rise later in life, so raising the PIA for Americans 78–82 might help.

Increase Lifetime Lower-Wage Workers' Special Minimum Benefit Low-wage workers receive a minimal benefit regardless of their earnings.

Lifetime low-earners would receive $12,402 in Social Security payments in 2023, or $1,033.50 each month. Biden wants to raise the minimum benefit to 125% of the federal poverty level. With the rise, a special minimum benefit recipient in 2023 would earn $1,518.75 per month.