Latest news with #COLA
Economic Times
16 hours ago
- Business
- Economic Times
Social Security $600 Bonus Payment in July: Is it real or fake? Here's what SSA says
Reuters United States Social Security Administration logo and U.S. flag are seen in this illustration. (REUTERS/Dado Ruvic/Illustration/File Photo) Many online claims have surfaced about a $600 bonus being added to Social Security payments in July 2025. These claims are circulating widely on platforms like TikTok and Facebook. However, the Social Security Administration (SSA) has made no such announcement. The misunderstanding appears to be based on confusion about the annual Cost of Living Adjustment (COLA).Social media posts have stated that SSA has approved a $600 payment for all Social Security beneficiaries. These claims say the payments will start in June 2025 and are meant to offset rising living costs. The rumor has spread fast and reached many users on Facebook and TikTok. Many users believe the payment will automatically appear in their bank accounts along with regular monthly deposits. The content claims these bonus checks are new and separate from the usual adjustments. Also Read: Supreme Court Key Rulings: All details about birthright citizenship, Obamacare task force, LGBTQ school books The SSA has issued no official statement approving a new $600 bonus payment. The administration has not introduced any special increase for July. There is no such program in the current schedule. The $600 figure seems to come from confusion over the COLA adjustment. COLA is calculated each year and spread across monthly payments. It is not sent as a single one-time stands for Cost of Living Adjustment. It helps Social Security beneficiaries keep up with inflation. The SSA calculates this using inflation data from the Consumer Price Index for Urban Wage Earners and Clerical review takes place from July to September each year. The rate is announced in October and takes effect from January of the next 2025, the COLA increase is 2.5%. If a person receives $2,000 in monthly benefits, this means a $50 increase per month. Over 12 months, the total increase becomes $600. Also Read: Squid Game Season 3 Ending: Who is Front Man and who wins the game? Here's new twist in last episode The increase linked to COLA already started in January 2025. Beneficiaries have received the raised amount in their monthly checks since then. The timing mentioned in the online posts does not match actual payment is no extra money being sent in July. What people are calling a 'bonus' is simply the total yearly increase due to the COLA have used this confusion to trick beneficiaries. Some people have been asked to share personal details like Social Security numbers and bank account information. There are also reports of fraud targeting Medicare SSA warns all recipients not to trust unverified sources and to avoid sharing personal data online or over the phone unless certain of the contact's ensures that government payments like Social Security, Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), and Veterans Affairs (VA) benefits keep up with 2025 increase is expected to give an average boost of $47 per month. In total, this is around $564 for the year. Some people with higher benefits may see a yearly increase over $600. But most recipients will get less. Retirees will also face increased Medicare premiums. The COLA adjustment may only balance rising costs, not raise disposable income. Is there a $600 Social Security bonus in July 2025? No, the SSA has not approved any $600 bonus. The confusion comes from the annual COLA increase already applied since January. How is the COLA increase applied to Social Security benefits? The COLA increase is spread monthly. A 2.5% hike in 2025 gives around $47 more per month for average retirees.
Time of India
17 hours ago
- Business
- Time of India
Social Security $600 Bonus Payment in July: Is it real or fake? Here's what SSA says
Online Rumors SSA Confirms No Bonus Exists Live Events What is COLA? Payments Already Began in January Fraud Risks What COLA Really Means? FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Many online claims have surfaced about a $600 bonus being added to Social Security payments in July 2025. These claims are circulating widely on platforms like TikTok and Facebook. However, the Social Security Administration (SSA) has made no such announcement. The misunderstanding appears to be based on confusion about the annual Cost of Living Adjustment (COLA).Social media posts have stated that SSA has approved a $600 payment for all Social Security beneficiaries. These claims say the payments will start in June 2025 and are meant to offset rising living costs. The rumor has spread fast and reached many users on Facebook and users believe the payment will automatically appear in their bank accounts along with regular monthly deposits. The content claims these bonus checks are new and separate from the usual SSA has issued no official statement approving a new $600 bonus payment. The administration has not introduced any special increase for July. There is no such program in the current $600 figure seems to come from confusion over the COLA adjustment. COLA is calculated each year and spread across monthly payments. It is not sent as a single one-time stands for Cost of Living Adjustment. It helps Social Security beneficiaries keep up with inflation. The SSA calculates this using inflation data from the Consumer Price Index for Urban Wage Earners and Clerical review takes place from July to September each year. The rate is announced in October and takes effect from January of the next 2025, the COLA increase is 2.5%. If a person receives $2,000 in monthly benefits, this means a $50 increase per month. Over 12 months, the total increase becomes $ increase linked to COLA already started in January 2025. Beneficiaries have received the raised amount in their monthly checks since then. The timing mentioned in the online posts does not match actual payment is no extra money being sent in July. What people are calling a 'bonus' is simply the total yearly increase due to the COLA have used this confusion to trick beneficiaries. Some people have been asked to share personal details like Social Security numbers and bank account information. There are also reports of fraud targeting Medicare SSA warns all recipients not to trust unverified sources and to avoid sharing personal data online or over the phone unless certain of the contact's ensures that government payments like Social Security, Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), and Veterans Affairs (VA) benefits keep up with 2025 increase is expected to give an average boost of $47 per month. In total, this is around $564 for the year. Some people with higher benefits may see a yearly increase over $600. But most recipients will get will also face increased Medicare premiums . The COLA adjustment may only balance rising costs, not raise disposable the SSA has not approved any $600 bonus. The confusion comes from the annual COLA increase already applied since COLA increase is spread monthly. A 2.5% hike in 2025 gives around $47 more per month for average retirees.
Hindustan Times
19 hours ago
- Business
- Hindustan Times
Fact check: Is SSA introducing $600 check boost for beneficiaries in July? Here's all you need to know
Jun 28, 2025 12:06 AM IST Multiple rumors regarding the impending monthly deposits sent by the Social Security Administration (SSA) suggest that beneficiaries might receive a $600 bonus in their outstanding payments for July. The notion was widely circulated by users on social networking sites such as TikTok and Facebook. Representational Image Many online users have claimed that the SSA has approved a special $600 payment for beneficiaries starting in 2025. They further claim that such checks will be delivered in June of this year and are part of the administration's initiatives to help deal with the rising cost of living. Such 'bonus payments' were supposed to automatically show up in beneficiaries' bank accounts along with impending monthly payments. Turns out, the case is a simple instance of misunderstanding since there has been no official notice or approval from the SSA to authorize the payment of an additional $600 to all beneficiaries. It appears many people have mistaken the annual Cost of Living Adjustment (COLA) payment as a monthly payment rather than an annual one. What is COLA and how is it calculated? COLA is a monthly amount added to the payments of SSA beneficiaries to help citizens better deal with the rising cost of living. This is calculated using inflation figures from the Consumer Price Index for Urban Wage Earners and Clerical Workers. The amount is calculated by the SSA after reviewing inflation trends from July to September. The determined rate is revealed in October and is applicable from January of the coming year. The COLA rate, as decided and revealed by the SSA in October 2024, is 2.5% for 2025. This roughly equals to an additional $50 per month for someone who receives $2,000 worth of benefits per month. This sum, as calculated over the period of a year, totals $600. These payments were initiated back in January of this year. Hence, the timing claimed by online users is completely false as well. Fraudsters have made a haven out of this misunderstanding. Multiple vulnerable groups who rely on social service benefits as a means of survival have been duped into giving out their Social Security number, bank account information and Medicare IDs. By Stuti Gupta
Globe and Mail
2 days ago
- Business
- Globe and Mail
Do You Understand These 3 Critical Facts About Social Security COLAs?
We're just a few months away from Social Security's 2026 cost-of-living adjustment (COLA) announcement. If you're already claiming checks, it could be the most important Social Security news you get all year because it tells you how much you can expect to get from the program in 2026 -- and how much of your expenses you'll have to cover on your own. The only true way to know how much you'll get next year is to wait for the official COLA announcement in October. But understanding these three key COLA facts can help you get some idea of what to expect now. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » 1. How the COLA calculation works The Social Security Administration bases the COLA on the difference in average third-quarter inflation data from one year to the next, as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). It sounds more complicated than it is. To calculate the 2026 COLA, it will add the CPI-W numbers for July, August, and September of 2025 and divide them by three to get the average. Then, it will compare that average to the average from the same months in 2024. The percentage increase reflects the COLA amount. So if the 2025 average is 3% higher, the 2026 COLA would be 3%. We don't have all the data to perform the calculation yet, which is why the Social Security Administration doesn't announce the COLA until October. That's when the September 2025 CPI-W number comes in. 2. COLAs are a percentage of your checks The Social Security Administration represents COLAs as a percentage. It adds this percentage to your existing checks to determine your 2026 benefit amount. That means everyone will see a unique dollar-value increase. The difference can be pretty significant. Someone claiming a $2,000 monthly check would only get $50 extra dollars from a 2.5% COLA, while someone claiming a $5,000 monthly check would get $125 more per month. 3. COLAs don't actually help your checks keep up with inflation The whole idea of COLAs is to help your Social Security checks' buying power remain steady over time. But research suggests this isn't actually happening. Benefits have lost 20% of their buying power since 2010, according to The Senior Citizens League (TSCL), a nonpartisan senior group. That means you'd need $1 to buy something you could've bought with $0.80 in 2010. This trend doesn't show any signs of slowing down, either. TSCL's latest estimate puts the 2026 COLA at just 2.5% -- the same as 2025. However, there is a chance it could be a bit higher if inflation rises over the next few months. There's a real chance you may get less than you'd hoped for, though. You can try several things to overcome this predicament. If you have personal savings, you can use them to supplement your Social Security checks. You could also consider working part-time or signing up for government benefits, like Supplemental Nutrition Assistance Program (SNAP) benefits and Supplemental Security Income (SSI). This can give you some help with your essential costs so you can use your Social Security checks in other areas. It's not too early to start brainstorming how you'll want to tackle your budget in 2026. But just note that you may have to adjust your plans in October when the Social Security Administration announces the official 2026 COLA. The $23,760 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies. The Motley Fool has a disclosure policy.
USA Today
6 days ago
- Business
- USA Today
Do you understand these 3 critical facts about Social Security COLAs?
We're just a few months away from Social Security's 2026 cost-of-living adjustment (COLA) announcement. If you're already claiming checks, it could be the most important Social Security news you get all year because it tells you how much you can expect to get from the program in 2026 − and how much of your expenses you'll have to cover on your own. The only true way to know how much you'll get next year is to wait for the official COLA announcement in October. But understanding these three key COLA facts can help you get some idea of what to expect now. 1. How the COLA calculation works The Social Security Administration bases the COLA on the difference in average third-quarter inflation data from one year to the next, as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). It sounds more complicated than it is. To calculate the 2026 COLA, it will add the CPI-W numbers for July, August, and September of 2025 and divide them by three to get the average. Then, it will compare that average to the average from the same months in 2024. The percentage increase reflects the COLA amount. So if the 2025 average is 3% higher, the 2026 COLA would be 3%. We don't have all the data to perform the calculation yet, which is why the Social Security Administration doesn't announce the COLA until October. That's when the September 2025 CPI-W number comes in. 2. COLAs are a percentage of your checks The Social Security Administration represents COLAs as a percentage. It adds this percentage to your existing checks to determine your 2026 benefit amount. That means everyone will see a unique dollar-value increase. The difference can be pretty significant. Someone claiming a $2,000 monthly check would only get $50 extra dollars from a 2.5% COLA, while someone claiming a $5,000 monthly check would get $125 more per month. 3. COLAs don't actually help your checks keep up with inflation The whole idea of COLAs is to help your Social Security checks' buying power remain steady over time. But research suggests this isn't actually happening. Benefits have lost 20% of their buying power since 2010, according to The Senior Citizens League (TSCL), a nonpartisan senior group. That means you'd need $1 to buy something you could've bought with $0.80 in 2010. This trend doesn't show any signs of slowing down, either. TSCL's latest estimate puts the 2026 COLA at just 2.5% -- the same as 2025. However, there is a chance it could be a bit higher if inflation rises over the next few months. There's a real chance you may get less than you'd hoped for, though. You can try several things to overcome this predicament. If you have personal savings, you can use them to supplement your Social Security checks. You could also consider working part-time or signing up for government benefits, like Supplemental Nutrition Assistance Program (SNAP) benefits and Supplemental Security Income (SSI). This can give you some help with your essential costs so you can use your Social Security checks in other areas. It's not too early to start brainstorming how you'll want to tackle your budget in 2026. But just note that you may have to adjust your plans in October when the Social Security Administration announces the official 2026 COLA. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. The $23,760 Social Security bonus most retirees completely overlook Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets"could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. JoinStock Advisorto learn more about these strategies. View the "Social Security secrets" »
