For over 71 million Americans who depend on Social Security, the upcoming changes in October 2024 are very important. The Social Security Administration (SSA) will make
adjustments to payments to help keep up with inflation. Here’s a simple breakdown of what’s happening and how it will affect you.
What is the Cost of Living Adjustment (COLA)?
The Cost of Living Adjustment (COLA) is an increase in Social Security payments meant to help beneficiaries keep up with rising prices. For 2025, the projected COLA is 2.57%.
This means your monthly Social Security or Supplemental Security Income (SSI) payments will go up to help cover higher costs of things like food and services.
Impact on SSI Recipients
Starting in October 2024, people who receive SSI will notice a boost in their monthly payments. SSI helps those who are elderly, blind, or disabled and have low income. The increase is designed to help them manage rising living costs better.
Changes to SSI Rules
From September 30, 2024, there will be a major change in SSI rules. Food assistance received from friends, family, or community groups will no longer be counted as unearned income. Previously, this aid could reduce your SSI payments or even affect your eligibility.
Advantages of the New Rule
This new rule will benefit those who get help with food from informal sources. By not counting this aid as income, you can receive a higher SSI payment without losing benefits due to receiving food assistance.
This change aims to make it easier for people to get the help they need without their benefits being cut.
The changes in October 2024 are significant for Social Security and SSI recipients. The COLA increase will help combat inflation’s impact on living costs, and the new SSI
rule will make it easier for people to get the help they need without losing benefits. These updates are designed to improve financial stability and ensure that beneficiaries can maintain their purchasing power.
1. What is COLA?
COLA stands for Cost of Living Adjustment. It’s an increase in Social Security payments to keep up with inflation.
2. How much will Social Security payments increase in 2025?
The COLA for 2025 is expected to be 2.57%, but the exact amount of increase for Social Security payments will be confirmed later.
3. When will the new SSI rules start?
The new SSI rules will take effect on September 30, 2024.
4. How will the new SSI rule affect me?
The new rule means food assistance from informal sources won’t reduce your SSI payments, making it easier to get help without losing benefits.
5. Why are these changes being made?
These changes are made to help Social Security and SSI recipients manage rising costs of living and simplify access to benefits.
