There is nothing more unscrupulous than playing around with other people’s money, and that has happened on the internet recently: the target of these games were Social Security beneficiaries.
In fact, and regarding this, the United States government has issued a warning to citizens regarding the careful verification of information related to their Social Security payments, due to a recent disclosure about an ongoing scam.
Websites are spreading false information about an alleged $600 increase in Social Security benefits, claiming that such an increase will take place in 2024. However, the US authorities have emphasized that any news about a $600 increase in the cost of living adjustment (COLA) is completely false and should be ignored.
The SSA puts to rest the rumors
The Office of the Inspector General (OIG) of the Social Security Administration (SSA) has advised the public to be alert to any attempts to obtain their personal information under the guise of a COLA adjustment.
“Reports about a $600 increase are FALSE. Please be careful and don’t be fooled by this scam,” said Social Security Commissioner Martin O’Malley. The hierarch added that they are informing the public about these falsehoods and working to address these misleading claims from their source. There will be no COLA increase until January 2025, he said, and it is not expected to be even close to something like $600.
Inspector General Gail S. Ennis added that annual cost of living increases are automatic and do not require any additional information from beneficiaries.
Claimants are advised to protect their personal information with extreme care, as fraudsters may try to steal their identity or money through this type of fraud.
How much will Social Security benefits increase in 2025?
Next week, the Bureau of Labor Statistics (BLS) will publish the June report, which will offer a new data to forecast the COLA adjustment that will be applied to Social Security and other federal benefits in January 2025. This year, a 3.2% increase was applied to profits, after a historic increase of 8.7% in 2023.
For the majority of older adults, the news of the decrease in inflation is beneficial in the short term, but not so much in the long term. The Senior Citizens League (SCL), an organization that defends the rights of older adults, has published a study that concludes that benefits have not kept pace with inflation, despite the COLA adjustments.
Of the last five COLA, only one exceeded inflation. During the 2010s, this figure was 40%, a decrease compared to two decades earlier, when 60% of COLAs exceeded inflation. What is the risk that the COLA is not enough? “When the COLA is not adequate, it can leave seniors thousands of dollars short of what they expected to receive from Social Security,” the SCL explained.
COLA increase forecasts for next year: It won’t be $600, that’s for sure
The SSA uses Consumer Price Index (CPI) data from July, August and September to calculate the COLA. The average of these months is compared with that of the same period of the previous year. September data will be available in early to mid-October, at which time the COLA will be announced. This year, the decision on the COLA will be announced on Thursday, October 10, 2024.
The SCL also issues a forecast for the COLA, placing it at 2.56% by 2025. The organization adjusted its projection after the May CPI report. The most decisive figures will come from the consumer price data for July, August and September, so it is still early to give a definitive projection.