Millennial Money: As of January, millions of individuals will experience an average monthly increase in Social Security benefits of more than $50 due to the Social Security Administration’s October 12 announcement of a 3.2% annual cost of living adjustment for 2024. The modification will provide immediate financial relief to present retirees, but it may also significantly impact distributions to future retirees.
Must-know financial terms for every millennial
The increase in 2024 is significantly less than the 8.7% increase from the previous year, which was the largest since 1981. A lesser increase, however, is not necessarily negative, given that the COLA reflects inflation; it may indicate that inflation is more stable, thereby enabling the Social Security Administration to extend maximum benefits.
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