The Social Security Administration (SSA) just announced a significant change in the way Supplemental Security Income (SSI) benefits will be handled, and it’s set to take effect on September 30th.
SSI is a crucial program for millions of Americans, especially those who are disabled or elderly, helping them make ends meet.
In fact, about 70 million people receive some form of Social Security income each year, and many also qualify for SSI if they meet certain income restrictions.
Currently, to qualify for SSI, you must earn less than $1,971 per month. But here’s where things get interesting—this regulation is about to change, potentially helping more people qualify for benefits.
The New Rule That Will Impact SSI Benefits!
Starting September 30th, food assistance will no longer be counted as part of your income when determining SSI eligibility.
That means benefits from programs like SNAP (Supplemental Nutrition Assistance Program) will no longer reduce the amount of SSI payments you can receive.
According to Alex Beene, a financial literacy expert at the University of Tennessee, this change could allow more people to qualify for SSI and help those already receiving benefits to get more money.
Previously, food assistance was considered “unearned income,” which lowered the total amount of SSI benefits a person could receive. With this change, individuals may see an increase in their monthly payments.
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What Does This Mean for You?
The average monthly SSI payment is about $943, but with this new rule, that amount could increase for some recipients.
This could make a big difference, especially with inflation currently sitting at 2.9%. Social Security payments also got a 3.2% boost this year due to the cost-of-living adjustment (COLA), but experts warn that next year’s increase might not be as high.
The American Association of Retired Persons (AARP) predicts the 2024 COLA to fall between 2.75% and 3.25%. While the COLA adjustments aim to help keep up with inflation, some economists argue that the formula doesn’t fully account for rising costs faced by seniors.
Jonathan Price, a retirement expert, explains that whether a retiree’s COLA is enough to maintain their purchasing power depends on individual circumstances, including personal expenses and additional sources of income.
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When Will You Get Your Next SSI Payment?
The SSA has a specific payment schedule, so it’s important to keep track of when you’ll receive your benefits. The schedule for the second half of the year is as follows:
| Month | SSI Payment Date | Advance Payment Date |
|---|---|---|
| August | August 1st | August 29th (for September 1st) |
| October | October 1st | October 31st (for November 1st) |
| December | December 1st | December 31st (for January 1st) |
For those who started receiving SSI before May 1997, payments are generally made on the third of each month. However, payment amounts can vary depending on your income, resources, and how you file.
For example, individuals might receive an average of $698, with a maximum of $943, while couples could receive up to $1,415 per month. If you qualify as an “essential person,” you could also receive an extra $472 each month.
Big Change Coming: New Social Security Rule Will Go Into Effect Soon
What You Should Know
This upcoming change to SSI rules could be a game-changer for many Americans, especially during tough economic times. By removing food assistance from the eligibility equation, the SSA is potentially offering more financial relief to those who need it most.
Keep an eye on your upcoming payments, and if you think you might qualify for more benefits under the new rules, now is the time to find out!