Millennial Money: What the 2024 Social Security COLA could mean for your retirement
The Social Security Administration adjusts its benefits payments each year to reflect changes in the cost of living
Social Security benefits for millions of people will rise by an average of over $50 a month starting in January, thanks to the Social Security Administration’s 3.2% annual cost of living adjustment for 2024, announced on Oct. 12. The change will immediately put more money in current retirees’ pockets, but it also could have a considerable effect on payouts to future retirees.
The 2024 increase is much smaller than last year’s 8.7%,the largest since 1981. But because the COLA reflects inflation, a smaller increase is not necessarily a bad thing; it suggests that inflation is more stable and may help the Social Security Administration provide maximum benefits for longer.
The COLA has been relatively volatile in recent years, however, and future retirees are understandably concerned about the health of the Social Security benefits program.
Here’s what the cost of living adjustments really mean and how to factor Social Security benefits into your future retirement budget.
