There has been a lot of misunderstanding recently due to speculations of a $600 increase in Social Security Disability Insurance (SSDI) payments. T
he Social Security Administration (SSA), however, has corrected the record, saying that these stories are wholly untrue.
The Social Security Administration issued the following unequivocal statement: “ALERT: Reports of a $600 payment increase in June are FALSE: NO COLA increase will occur until January 2025.”
This implies that any hope for an instant increase in advantages is misplaced.
In order to ensure that benefits stay up with inflation, the Cost-of-Living Adjustment (COLA) was implemented in 1975. Based on data on inflation from the third quarter of 2024, the next COLA is slated to go into effect in 2025.
The Social Security Administration 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.”
Although the precise COLA for 2025 won’t be revealed until October, projections indicate that it might be in the neighborhood of 3.2 percent.
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— Social Security (@SocialSecurity) June 11, 2024
This would be in line with the adjustment for the current year but not quite reach the notable 8.7 percent increase observed in 2023.
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Social Security: Trust Fund Issues, Beneficiary Distribution, and Information
About 7.5 million receivers of Supplemental Security Income and 66 million beneficiaries of Social Security receive COLA benefits from the SSA.
The problem is still crucial since there are still worries about the Social Security trust fund’s sustainability, which could run out in ten years. The chief actuary of the SSA, Steve Goss, estimates that benefits might only cover 80% of their current worth in the absence of reforms.
The SSA has stated that news regarding the 2025 COLA will probably be issued through the “My Social Security” account messaging center, which provides a convenient and safe means of staying updated.
The SSA advises everyone to remain cautious when it comes to scams in light of these developments. According to them, “Avoid falling victim to fraudulent calls and internet ‘phishing’ schemes by not revealing personal information, selecting malicious links, or opening malicious attachments.”
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