This United States Social Security adjustment is a measure that seeks to maintain the purchasing power of retirees
Beginning September 3, millions of Americans who rely on Social Security (SSA) will get some encouraging news: an increase in their monthly payments. This improvement in benefits will reflect a positive adjustment for those who rely on these payments for their livelihood, marking a significant change in the financial support provided by Social Security benefits.
This adjustment in Social Security payments seeks to preserve the purchasing power of retirees and people with disabilities, and is a consequence of the annual cost-of-living adjustment (COLA) formula. This mechanism is used to update the amount of Social Security, ensuring that benefits reflect the increase in the cost of living and continue to provide the necessary support to the program’s beneficiaries.
United States Social Security increase
While the Senior Citizens League (TSCL) projections anticipate a 2.6% increase in Social Security benefits by 2025, it is important to know the specific adjustments that will be implemented beginning next month. These increases reflect the cost-of-living adjustment (COLA) formula that is applied annually to ensure that Social Security payments remain aligned with the rising cost of living.
As explained by Capital, the increase to be applied in September will be particularly notable compared to previous years. This adjustment will benefit not only retirees, but also people with disabilities who get Supplemental Security Income (SSI). The increase is designed to provide additional financial relief to these groups, reflecting an effort to improve economic support for those who need it most.
The increase will reach up to $943, an unprecedented amount. For an eligible person living with a spouse, the total amount will be $1,415. This adjustment represents a significant increase in benefits, intended to provide greater financial support to beneficiaries.
By next year, 2025, benefits could experience a notable increase. The monthly amount for a 62-year-old is expected to reach $1,332.01, while those age 67 could get as much as $1,603.70. Beneficiaries age 70 and older could see their payments rise to $2,090.52 per month. These adjustments reflect an effort to improve financial support with advancing age.
This historic increase in Social Security benefits comes at a critical time for millions of Americans facing economic hardship. Undoubtedly, this increase will provide essential relief for those who depend on this social safety net for their livelihood and well-being, offering an important respite in times of financial uncertainty.
New SSI rules: What changes will they bring for beneficiaries?
Effective September 30, 2024, the Social Security Administration (SSA) will implement three new rules that promise to transform the landscape for Supplemental Security Income (SSI) recipients.
These adjustments are designed to broaden the scope of benefits and make them more accessible. The following are the major changes:
- Redefinition of households on public assistance: The new rule simplifies the definition of “household getting public assistance”. Now, only one SSI recipient is required to live with at least one other member who gets public assistance, and the Supplemental Nutrition Assistance Program (SNAP) will be included in this package. This modification will make it easier for more people to qualify for SSI and will improve payments for approximately 277,000 current recipients.
- Changes to Food Assistance Calculations: SSA will adjust how food assistance is considered in the calculation of SSI benefits. Previously, any type of food help was considered unearned income, thus reducing SSI benefits. With the new change, recipients will be able to get food assistance without negatively affecting their benefits, which is a significant advance for people with disabilities.
- Expansion of the rent subsidy policy: The rent subsidy policy, which previously applied only in certain states, will be expanded nationwide. This means that SSI recipients will be able to get rental assistance without having their benefits reduced or affected, ensuring greater support nationwide.
These changes are part of an ongoing effort to improve equity and access to SSI, benefiting more people and providing more meaningful financial relief to those in need.
