Social Security updates recipients about payment increase

The Social Security Administration said any reports of a $600 benefit payment to be introduced in June were false.

The agency noted that its cost-of-living adjustment, or COLA, will only happen in 2025.

“ALERT: Reports of a $600 payment increase in June are FALSE: NO COLA increase will occur UNTIL January 2025,” the agency said.

COLA was introduced in 1975 to help ensure the benefits that retirees receive are responsive to inflationary forces in the economy.

“It is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year a COLA was determined to the third quarter of the current year. If there is no increase, there can be no COLA,” according to the agency.

The government is set to announce a new COLA in October.

There have been some estimates about what it could be based on recent inflation readings. Last month, the Bureau of Labor Statistics revealed that inflation in April accelerated on a yearly basis to 3.4 percent. Some analysts forecast that with inflation elevated at that level, the COLA for next year could come in at 3.2 percent.

This would match this year’s COLA and will be way below the 8.7 percent instituted in 2023. The final determination for COLA would be contingent on what the inflation data would reveal about where price increases will settle. The COLA is disbursed to about 66 million Americans who are Social Security beneficiaries and 7.5 million who are recipients of Supplemental Security Income.

The issue of Social Security has been under intense scrutiny as some experts project that the trust fund from which benefits to millions of retirees are disbursed could be depleted in about a decade. Without reforms, the income distributed to recipients will be 80 percent of the full amount, according to Steve Goss, the Social Security Administration’s chief actuary.

The 2025 COLA announcement could potentially be revealed to recipients through the message center on their “My Social Security” account if last year’s process is an indication.

“This is a secure, convenient way to receive COLA notices online and save the message for later. You can also opt out of receiving notices by mail that are available online. Be sure to choose your preferred way to receive courtesy notifications so you won’t miss your secure, convenient online COLA notice,” the agency said.

The SSA warned retirees to be vigilant against scams.

“Avoid falling victim to fraudulent calls and internet ‘phishing’ schemes by not revealing personal information, selecting malicious links, or opening malicious attachments,” they pointed out.