It's the third week in December which means New Year's Day is just around the corner and so too is 2015. But while much of the nation will be focused on the festivities and their New Year's resolutions, several million Americans, particularly those who are receiving disability benefits or Security Income, will be focused on what the New Year means for their benefits.
As you may have already heard, the Social Security Administration plans on increasing the annual cost-of-living adjustment, also called the COLA, to 1.7 percent. This would increase the amount received from disability benefits -- such as Social Security, Social Security disability and Supplemental Security Income -- which could make a huge difference for a number of beneficiaries across the nation.
It's estimated that roughly 64 million Americans will be affected by the COLA increase, giving them additional funds to help cover medical needs, rent, food, and everyday essentials, just to name a few. As many of our readers will agree, this was a welcome relief that many have waited the entire year to see.
Although the increase went into effect this month, most SSA beneficiaries will not see its effect until January 2015. For people receiving SSI payments, the situation is a little different. According to SSA, SSI payments are typically received on the first of the month. But because January 1 is a holiday, benefits are made available the day before. This means the SSI beneficiaries may see how the increase will affect them at the end of this month, which may give them more to cheer about when the clock strikes midnight on New Year's Eve.
Source: The Wall Street Journal, "Americans’ Social Security Benefits to Increase 1.7% in 2015," Josh Mitchell, Oct. 22, 2014