Goodbye to Current SSI Benefits – Everything Changes on September 30th
According to Lagradaonline, The Social Security Administration (SSA) has announced that a significant change to the Supplemental Security Income (SSI) benefits application process will take effect in just a few weeks. Approximately 70 million Americans receive Social Security income annually, with some qualifying for SSI if they are disabled or older citizens who meet specific eligibility requirements. Under current guidelines, individuals must earn no more than $1,971 per month to qualify for SSI benefits. However, with the upcoming rule change, food benefits will no longer count toward the income limit for SSI eligibility starting September 30. This means that individuals receiving assistance through programs such as the Supplemental Nutrition Assistance Program (SNAP) will no longer be disqualified from receiving SSI benefits.
How the New Rule Will Impact SSI Benefits
According to Alex Beene, a financial literacy lecturer at the University of Tennessee at Martin, this change could allow more Americans to qualify for SSI benefits while increasing the support available to current recipients. Beene explained to Newsweek that food assistance has traditionally been considered unearned income, which reduces the amount of SSI benefits people can receive. By removing food benefits from the eligibility calculation, individuals who previously saw their benefits reduced could now receive more financial support.
In addition, under the current rules, SSI payments may be reduced if food and housing benefits are classified as unearned income. The new regulation could increase the maximum benefits that SSI recipients are eligible to receive or extend benefits to more Americans each month. The current average monthly SSI payment is $943, but with the recent change to the nutrition benefits rule, this figure may rise.
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Potential Benefits Increase Amid Inflation Concerns
The increased benefits will be especially impactful for SSI recipients as inflation continues to affect the cost of living. The national inflation rate was 2.9% as of July, and the cost-of-living adjustment (COLA) for Social Security rose by 3.2% this year. However, experts have cautioned that next year’s COLA will likely be lower, with estimates between 2.75% and 3.25%, according to the American Association of Retired Persons (AARP).
Economists have long been concerned that the current COLA formula does not adequately address rising costs for seniors. Jonathan Price, National Retirement Practice Leader at the benefits consulting firm Segal, explained to Newsweek that whether a retiree’s COLA is enough to maintain their purchasing power depends on individual circumstances, such as expenses and other income sources.
SSI Payment Schedule: Upcoming Dates for Beneficiaries
The SSA follows a year-round payment schedule for all of its programs. It’s important for beneficiaries to understand these schedules to avoid confusion, as different programs have varying payment dates. However, SSI payments are generally more straightforward. Individuals who began receiving benefits before May 1997 receive their SSI payments on the third day of each month. Below is the payment schedule for SSI beneficiaries for the remainder of the year:
| Month | SSI Payment Date | Advanced Payment Date |
|---|---|---|
| August | August 1st | August 29th (for September 1st) |
| September | – | – |
| October | October 1st | October 31st (for November 1st) |
| November | – | – |
| December | December 1st | December 31st (for January 1st) |
SSI Benefit Amounts: How They Vary by Filing Category
It’s important to remember that SSI benefits are adjusted based on income, resources, and the applicant’s filing category. For example, individuals who file as single and meet the financial requirements may receive an average monthly payment of $698, with a maximum benefit of $943. Couples who qualify may receive up to $1,415 per month, while those meeting the essential person (EP) criteria could receive an additional $472 monthly.
As this new rule takes effect on September 30, beneficiaries should review their eligibility and understand how these changes might impact their benefits. With inflation affecting daily expenses and the cost-of-living adjustment potentially lower next year, any increase in SSI benefits could be a welcome financial relief for recipients.
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