Recent rumors about a $600 increase in Social Security Disability Insurance (SSDI) payments have caused widespread confusion. However, the Social Security Administration (SSA) has clarified that these reports are completely false.
In a clear statement, the SSA said: “ALERT: Reports of a $600 payment increase in June are FALSE: NO COLA increase UNTIL January 2025.” This means that any expectation of an immediate increase in profits is unfounded.
The Cost of Living Adjustment (COLA), designed to ensure benefits keep pace with inflation, was introduced in 1975. The next COLA is scheduled to take effect in January 2025, based on third-quarter inflation data 2024. The SSA emphasized: “If there is no increase in the Consumer Price Index for Urban Wage Earners and Office 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 would fall short of the significant 8.7 percent increase seen in 2023.
SSA distributes COLA benefits to approximately 66 million Social Security beneficiaries and 7.5 million Supplemental Security Income beneficiaries. Given current concerns about the sustainability of the Social Security trust fund, which could be depleted within a decade, the issue remains critical. Without reforms, benefits could cover only 80 percent of their current value, according to Steve Goss, SSA’s chief actuary.
For those wondering how they will receive updates about COLA 2025, SSA has indicated that announcements will likely be made through the “My Social Security” account message center, providing a secure and convenient way to stay informed.
The SSA statement aims to dispel misinformation and provide accurate information to beneficiaries, ensuring they are prepared for official announcements and changes set for 2025.