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.
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