Millions of retirees in Florida will experience these changes to their Social Security benefits

Florida is one of the states known for its attractive popularity among retirees and its Social Security benefits.

The Social Security Administration (SSA) is an organization that is constantly changing According to the new needs of retirees, But to sign up more and more members, they hope to live off the income they get from it.

Florida has a well-earned reputation as a magnet for retirees, consistently ranking at or near the top of states that attract retirees from elsewhere. In 2022, it was the number one destination for retirees from other states, according to a study by Hire a Helper.

Considering how many retirees live in Florida, it’s not surprising that the state has an extensive network of Social Security offices, which should be divided into two regions: North Florida and South Florida. There are 24 offices in North Zone and 31 offices in South Zone.

How many Florida retirees qualify for Social Security?

According to the Social Security Administration, nearly 5 million Florida residents are eligible for Social Security Aged, Survivors and Disabled (OASDI) benefits. In total, about 3.8 million are retired workers.

Social Security rules in Florida are the same as anywhere else in the U.S., so if you’re a retiree planning to move there in 2024, you won’t run into any Sunshine State-specific rules.

However, you may have an advantage that most American seniors don’t enjoy: Florida is one of nine states with no state income tax. This means you don’t have to pay state taxes on your Social Security benefits or any other income you earn. The lack of an income tax is one of the reasons Florida ranks sixth among the 25 most tax-friendly states for retirement.

What are the changes to Social Security for Florida retirees?

Based on new Social Security information you need to know in 2024: The annual cost-of-living adjustment (COLA) for beneficiaries in Florida and elsewhere. The official COLA is expected to be announced on October 12, when inflation figures for September are released. According to the latest estimates from The Senior Citizens League, a nonpartisan senior advocate group, the COLA is expected to be 3.2% in 2024.

A 3.2% COLA would increase retirees’ average monthly benefit of $1,790 to $57.30. That’s a big drop from this year’s 8.7% COLA, which raised the average monthly check by about $146. The COLA for 2022 was 5.9%.

If you’re planning to move to Florida in 2024, beware: It has the highest inflation rate in the country, according to NBC Miami. That’s because inflation rates in the Sunshine State, especially metros like Miami-Fort Lauderdale-West Palm Beach and Tampa-Clearwater, are running at twice the national average.

Another change you may see in 2024 is a higher limit on income outside of Social Security checks. As AARP notes, retirees, survivors and dependents who have not yet reached full retirement age can have a portion of their Social Security payments temporarily suspended if they continue to work and earn above a certain amount.

This earnings test changes each year based on national wage trends. In 2023, the limit is $21,240 for beneficiaries who have not reached full retirement age. This is up from $19,560 in 2022. For every $2 of annual income above that limit, the SSA withholds $1 of benefits.