A campaign was started by the Social Security Administration to encourage more people in need of financial assistance to apply for Supplemental Security Income (SSI). According to data from the CBPP, 7.5 million persons received SSI benefits in December 2022, and 85% of them qualified due to a severe handicap (including blindness).
Social Security COLA; Source- MARCA
Supplemental Security Income
When a person’s income and resources fall below certain financial thresholds and they are 65 years of age or older without a disability, SSI will pay them a monthly benefit. Based on a press release, the agency introduced a new campaign focusing on underserved communities with the largest drop in SSI usage since the pandemic, the majority of residents of those zip codes being people of color, and those residents living within or below the 150 percent Federal poverty threshold.
Assessment By Senior Citizens League
Due to an 8.7% increase in Social Security’s COLA, each beneficiary’s average monthly SSI income climbed from $841 in 2022 to $914 in 2023. Beneficiaries are set to receive a substantially smaller adjustment in 2024 as the pace of inflation slows, according to the Senior Citizens League (TSCL). According to Mary Johnson, TSCL’s Social Security & Medicare policy expert, the COLA in 2024 may be close to 3.1%. Johnson claimed that despite some indications of moderate inflation, prices have not decreased. Beneficiaries lose purchasing power lacking an accurate COLA that maintains up with escalating costs, particularly throughout a retirement that could last 25 to 30 years. This loss accumulates over time and gets worse as retirees get older. Significant challenges may result from it, such as faster-than-anticipated funds depletion, rising debt, and poorer health results.
Social Security COLA Of February
In February 2023, the typical Social Security retirement payout was around $1,782 per month or $21,384 per year. The majority of seniors enlist in Medicare’s Supplemental Medical Insurance, generally known as Part B of Medicare, and have their Social Security benefits deducted from the Part B premiums. These premiums will deplete their paychecks more quickly as long as healthcare expenses continue to exceed general inflation. You can receive less money if you file for benefits earlier than those who wait to retire. For instance, those who waited until they were 70 years old to file for benefits raised the amount they could take out. According to Fidelity, your Social Security earnings are determined by factoring in your lifetime earnings, the time you start receiving benefits, and any COLA increases.
Maximum Social Security Benefit In 2023
By retiring at age 62, 65, 66, or 70 in 2023, retirees can get a maximum initial monthly payment of $2,572, $3,279, $3,506, or $4,555, respectively. Social Security must be a part of your entire retirement plan rather than your sole source of income because the standard Social Security payment was never intended to replace a retiree worker’s full income. It’s critical to start saving and investing now, while time is still on your side if you have years before retirement.
