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Citizens will receive an average boost of $600 due to Social Security changes as a result of the 2.5% rise in the United States' Cost of Living Adjustment policy, designed to combat inflation.
COLA works by taking the Customer Price Index for Urban Wage Earners and Clerical Workers to give the Bureau of Labor Statistics a representative look at how inflation is impacting day-to-day prices for typical Americans.
This data is then handed over to the Social Security istration, who authorize either rises or falls in the COLA according to the costs of living. Falls in the percentage generally suggest inflation is falling or is unchanged - a positive sign.
For 2025, this COLA change will be set at 2.5% increase and will impact around 68 million people by providing them with more money in a bid to offset the challenging economic times.
This will work out at around an extra $600 for the year, and payments for this began in January 2025. Those earning more than $176,100, subject to tax, will not be allowed the increase.
For clarity, COLA changes for 2025 impacts retirees, disabled individuals, survivors, and Supplemental Security Income (SSI) recipients who were claiming Social Security programs as of December 2024.
How to avoid COLA scams: The steps to take
Due to the magnitude of money involved, the Social Security system is a prime target for scammers looking to steal the personal financial details of those who are elderly or disabled.
Thus it is imperative to ensure you take all of the steps you can to protect yourself. It's key to note that the Social Security istration will never ask for sensitive details via email or phone.
For any questions and queries you should visit the official SSA website, call 1-800-772-1213 or book an appointment at your local office.