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The PRICE of everyday goods seems to have been skyrocketing lately.

However, Social Security recipients will soon get a little bit of a breather.

Getty

Major changes are coming to the Social Security system (Stock)[/caption]

Each year, the Social Security Administration (SSA) increases benefits in an attempt to prevent inflation from eroding the purchasing power of beneficiaries. 

This is known as the cost of living adjustment (COLA).

1. COLA BUMP

The Senior Citizens League (TSCL) predicts the COLA will be 2.6 percent, an increase from last month’s prediction of 2.5%.

That indicates the fifth consecutive month the forecast has increased amid inflationary pressures. 

This change could impact more than 72.5 million Social Security recipients. 

The COLA is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for July, August and September.

That figure is compared to the CPI-W for the same period during the previous year. And the year-over-year difference is the new COLA.

It is usually announced in the beginning of October.

But some seniors could have more benefits to look forward to. 

2. BONUS DEDUCTION

The One Big Beautiful Bill Act signed into law by President Donald Trump has opened the door for additional tax benefits.

For tax year 2025, seniors age 65 and older who file their taxes individually and earn less than $75,000 would get an additional $6,000 tax deduction. 

Those married filing jointly who earn up to $150,000 would get a $12,000 deduction.

Tax payers with incomes that breach those thresholds would see reduced tax deductions until they are completely phased out.  

Moreover, the SSA states that about 90 percent of recipients would no longer need to pay income taxes on their benefits thanks to the bill.

“By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump’s promise to protect Social Security and helps ensure that seniors can better enjoy the retirement they’ve earned,” Social Security Commissioner Frank Bisignano said in a press release.

But TSCL argues these benefits don’t go far enough.

“The Big Beautiful Bill is a good start on providing financial relief for American seniors,” TSCL said in a statement. 

“The next priority should be providing support for the estimated 7.3 million American seniors who are living on less than $1,000 per month, which is below the federal poverty line.”

According to TSCL’s analysis, about 13% of seniors live on less than $1,000 a month. 

“TSCL’s research shows that 93% of American seniors see Social Security and Medicare reform as a high priority for Congress and the President,” TSCL said. 

“They’re calling on the administration to calculate COLAs with an index more representative of seniors’ experiences and provide a one-time catchup payment to make up for historic COLA shortfalls,” TSCL continued.

But that’s not the only issue facing some beneficiaries. 

3. GOING PAPERLESS

Beginning September 30, the SSA would no longer be mailing out paper checks to beneficiaries. It will exclusively make electronic payments. 

Recipients will generally need to get payments via direct deposit or through a prepaid debit card called Direct Express.

However, a few beneficiaries will be able to sign up for waivers to continue receiving paper checks under certain circumstances. 

The SSA says the change marks an effort to crack down on fraud and save money.

“Paper checks are 16 times more likely to be lost or stolen compared to electronic payments, increasing the risk of fraud,” The SSA said in a blog post. 

“Electronic payments provide a safer, more secure way to receive benefits,” The SSA added.

INSOLVENCY THREAT

The federal trust funds that finance Social Security benefits are at risk of insolvency in a little more than seven years, according to an analysis by the Committee for a Responsible Federal Budget (CRFB).

The CRFB estimates that without an act from Congress, millions of retirees could face an $18,100 cut to Social Security checks each year.

“If policymakers fail to act, they will effectively be supporting a 23% across-the-board benefit cut for all retirees in just eight years,” the CRFB said in its report. 

“Fortunately, there is still time for policymakers to enact pro-growth solutions that protect the long-term viability of the program.”

A WOMAN went to the hospital and walked out with an almost $8,000 parking bill.

She says that after going to the hospital for a cancer screening, her car bill was thousands of dollars when the machine mistakenly claimed she had been parked there for years.

Google Maps

Cate Daniels went into the hospital for a cancer screening and left with an almost $8,000 parking fee[/caption]

CBS News Los Angeles

The attendant then allegedly refused to fix it at the gate[/caption]

The Los Angeles County woman was left dumbfounded after a 45-minute park led to a $7,829 bill from Glendale Memorial Hospital.

The patient told ABC affiliate KABC-TV that the parking attendant falsely claimed she had been parked there for weeks.

“The receipt spit out nearly $8,000 as the amount charged,” Cate Daniels told the station.

On the bill, it printed that she had entered on July 3, 2022, and departed July 25, 2025.

At first, she wondered if the comma was a decimal when she saw the exorbitant amount.

But when she checked her bank account, the money had been taken.

“Initially, he saw July 3 on the ticket and he said ‘You’ve been parked here for three weeks,'” Daniels said, telling him she had actually only been in the parking garage for less than an hour.

The attendant then allegedly refused to fix the charge, and would not give her a name of someone who could help.

Daniels, who lost her husband to cancer last year, said that she “remembers what it feels like to be in this state of crisis.”

“Nobody needs something like that to have to contend with in the midst of all of that,” she said.

A hospital spokesperson told the outlet that it was “made aware of a billing error by the parking company that resulted in an overcharge for one guest.”

“Once notified, the parking company promptly acknowledged the mistake and began processing a refund.”

The company is also going to replace the parking machine.

“Two different people have said things like this happen in that lot,” Daniels said, according to CBS News.

“How can – when people are receiving healthcare – something like this happen with any frequency?”

A few hours away from the hospital in San Francisco, $324 in parking fines were given to a woman for parking in her own driveway.

The resident, alongside others in the area, now have been concerned about a possible “snitch” calling officials on their cars, according to a San Francisco Chronicle story.

She received the tickets after her car was partially on the sideway as her driveway is too short.

“We’re not fighting the law, we all agree that strollers and disabled people need to pass,” Sharon Gillenwater of the Noe Valley neighborhood said.

“But can we just be in the spirit of the law? In our case, there is plenty of room for two wheelchairs to go in tandem down the street.”

Her husband, Andrew Keeler, joked that the person calling on them became somewhat of a “neighborhood murder mystery.”

CBS News Los Angeles

The hospital apologized for the charge after Daniels went to news outlets[/caption]

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