The Social Security Administration said reports that the $600 benefit would be introduced in June were incorrect.
The agency noted that the cost of living adjustment (COLA) will only be implemented in 2025.
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“WARNING: Reports of a $600 payment increase in June are incorrect. COLA increases will not occur until January 2025,” the department said.
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COLA was introduced in 1975 to ensure that the benefits retirees receive are in line with inflationary trends in the economy.
According to the agency, “This is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Employees (CPI-W) from the third quarter of the previous year when the COLA was determined to the third quarter of the current year. Without an increase, there can be no COLA.”
The government is expected to announce the new COLA in October.
There are some estimates as to how much it could be, based on recent inflation numbers. Last month, the Bureau of Labor Statistics revealed that inflation accelerated to 3.4% year-over-year in April. Some analysts have projected that if inflation rises to that level, next year’s COLA could be 3.2%.
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That’s the same as this year’s COLA and well below the 8.7% that will take effect in 2023. The final decision on the COLA will depend on what inflation data reveals about where price increases will settle. The COLA is paid to about 66 million Americans who are Social Security recipients and about 7.5 million who are Supplemental Social Security Income recipients.
Social Security’s problems have come under intense scrutiny, with some experts predicting that the trust funds that pay benefits to millions of retirees could run dry in about a decade. Without reforms, beneficiaries could receive 80% of their full income, according to Steve Goss, the Social Security Administration’s chief actuary.
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If last year’s process is any indication, the 2025 COLA announcement will likely be made public through the message center in beneficiaries’ “My Social Security” accounts.
“This is a safe and convenient way to receive your COLA notice online and save your message for later. You can also opt out of receiving notices via mail, which are available online. Be sure to select your preferred method of receiving courtesy notices so you don’t miss out on our safe and convenient online COLA notices,” the agency said.
The SSA has warned retirees to be on the lookout for scams.
“Avoid falling victim to fraudulent phone calls and internet ‘phishing’ scams by not revealing personal information, selecting malicious links or opening malicious attachments,” they noted.
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