Recent rumors about a $600 increase in Social Security Disability Insurance (SSDI) payments have sparked a lot of confusion. However, the Social Security Administration (SSA) has set the record straight: these reports are entirely false.
In a clear statement, the SSA said, “ALERT: Reports of a $600 payment increase in June are FALSE: NO COLA increase will occur UNTIL January 2025.” This means that any expectation of an immediate boost in benefits is unfounded.
The Cost-of-Living Adjustment (COLA), which helps ensure that benefits keep pace with inflation, was introduced in 1975. The next COLA is scheduled to take effect in 2025, based on inflation data from the third quarter of 2024. The SSA clarifies, “If there is no increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), there can be no COLA.”
While the exact COLA for 2025 won’t be announced until October, estimates suggest it could be around 3.2 percent. This would match the current year’s adjustment but fall short of the significant 8.7 percent increase seen in 2023.
Social Security: Beneficiary distribution, trust fund concerns, and staying informed
The SSA distributes COLA benefits to approximately 66 million Social Security beneficiaries and 7.5 million Supplemental Security Income recipients. Given ongoing concerns about the sustainability of the Social Security trust fund, which could be depleted in a decade, the issue remains critical. Without reforms, benefits might only cover 80 percent of their current value, according to Steve Goss, the SSA’s chief actuary.
For those wondering how they’ll receive updates on the 2025 COLA, the SSA has indicated that announcements will likely be made through the “My Social Security” account message center, offering a secure and convenient way to stay informed.
In light of these developments, the SSA urges everyone to stay vigilant against scams. They advise, “Avoid falling victim to fraudulent calls and internet ‘phishing’ schemes by not revealing personal information, selecting malicious links, or opening malicious attachments.”
WASHINGTON – Congress on early Saturday passed a bill that would increase Social Security benefits for public sector workers.
The Social Security Fairness Act, would eliminate the Windfall...
Investing in the S&P 500 (^GSPC 1.09%) has historically been a great way for someone to grow their wealth. As a benchmark for the broad market, the index...
Employee access to a payroll deduction plan improves retirement security, yet about half of working Americans lack access to such a plan, according to...
