New 2015 COLA Now in Effect for Social Security Disability Beneficiaries
On January 1, 2015, an estimated 64 million Americans saw their Social Security benefits increase by 1.7 percent, as per the new cost-of-living adjustment (COLA). The increase applies to Social Security retirement, Supplemental Security Income (SSI), and Social Security Disability Insurance (SSDI) benefit recipients. The increase also applies to veteran’s benefits, including military retired pay, VA disability, and survivors’ benefits.
Purpose of the COLA
SSDI payments, which are funded by revenue from FICA payroll taxes, are crucial for the survival and well-being of millions of Americans. The benefits provide a much-needed monthly income to people who have not yet reached retirement age, but can no longer work because of a severe long-term or terminal disability.
The purpose of COLAs is to ensure that recipients’ benefits still have the same purchasing power they’re supposed to have, i.e., that they are not eroded by inflation.
The Social Security Administration explains how COLAs are calculated: “It is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year a COLA was determined to the third quarter of the current year.”
Changes in Your Benefit Payment
With the new COLA, you should expect to see an increase of roughly $19 on your benefit payments in 2015. The SSA explains that the average monthly benefit will increase from $1,146 in 2014 to $1,165 in 2015, roughly a $228 yearly increase from last year.
Call a local disability associate to discuss your case if you are having problems with your disability payments, notice discrepancies, or the SSA wrongly denied you benefits. A disability associate can help you secure the benefits you deserve.
If you need a disability associate, call Disability Help Group for a free consultation. Contact us today at 1-(800)-800-3332.