Social Security is an essential part of the financial support system for tens of millions of older Americans. The regular income that Social Security provides makes up a huge fraction of the financial resources for many people who have retired.

Social Security typically goes through some changes from year to year. As you'll see below, some key changes to Social Security in 2024 will help recipients, but others could have an adverse impact on your finances. Be prepared by reading through these three key changes to Social Security that will take effect in January.

Unlike most traditional pensions, Social Security payments are tied to inflation. Every year, the Social Security Administration (SSA) looks at changes in one measure of consumer prices to figure out the amount of the annual cost-of-living adjustment, or COLA for short. When inflation is high, the COLA tends to be larger. When inflation is low, COLAs can be small or even zero.

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Source Fool.com