PERSONAL FINANCE
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Will there be a Social Security $600 increase for SSI in June 2025? Here's what we know

Social Security benefits are adjusted based on inflation trends

Social Security
Social Security

In recent weeks, misinformation about a massive Social Security increase has flooded social media and inboxes, prompting alarm among beneficiaries. The viral rumor claims that Social Security recipients are set to receive a one-time $600 cost-of-living adjustment (COLA) increase. While the claim has gained traction, it is entirely false.

This misleading information has caused significant confusion-and chaos. In fact, more than 463,000 calls flooded the Social Security istration's (SSA) phone lines in the past several weeks, many of them from concerned retirees and disabled individuals seeking to confirm or deny the rumored increase.

The source of the $600 figure remains unclear, but SSA officials have stated firmly that no such lump-sum adjustment has been authorized or proposed.

How COLA actually works and what to expect in 2025

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COLA is not determined arbitrarily or through one-time payments. Each year, Social Security benefits are adjusted based on inflation trends, using data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (I-W). The adjustment is designed to help beneficiaries keep up with rising costs on essentials like food, utilities, gas, and prescription medications.

For 2025, the official COLA has been set at 2.5 percent, a modest increase reflecting current inflation data. This translates to an average increase of around $50 per month for most Social Security recipients-not $600. While any increase is welcome for those on fixed incomes, it's a far cry from the viral claim that sparked widespread misunderstanding.

All future COLA changes will continue to follow the annual inflation-based formula established by law. The SSA releases official updates every fall, typically in October, based on the third-quarter inflation data.

Though the 2.5 percent COLA increase for 2025 is smaller than some had hoped, it remains an important mechanism to preserve the purchasing power of retirees and disabled Americans.

Beneficiaries are encouraged to adjust their monthly budgets accordingly and explore additional programs-such as Supplemental Nutrition Assistance Program (SNAP) or Low Income Energy Assistance Program (LIHEAP) - if they're struggling to make ends meet.

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