Major Social Security Changes Rolling Out for SSI Recipients This Month
This month, significant changes are being made to Supplemental Security Income (SSI) by the Social Security Administration (SSA), offering some relief to millions of beneficiaries.
SSI provides benefits to children and adults with disabilities who earn below a certain income level. However, the rules for calculating benefits and determining eligibility have evolved over time, and the SSA is now implementing key updates.
Key Updates to SSI Policies
Starting this month, SSA will adjust its policies regarding rental subsidies and the definition of public assistance households. Additionally, food assistance from friends and family will no longer be considered when calculating benefits, a change that could result in a $131 monthly increase for over 90,000 recipients.
Financial literacy expert Alex Beene from the University of Tennessee at Martin views the changes as overwhelmingly positive. “These updates should increase both the number of Americans who qualify for benefits and the average monthly payment for many,” Beene explained.
Beene emphasized that not counting food assistance from family and community resources will result in larger benefit checks for millions of current recipients, while also helping others who previously didn’t qualify for aid.
SSI Impact and Payment Increases
Approximately 7.5 million people depend on SSI monthly, with individual benefits capped at $943 and couples receiving up to $1,415. Eligibility is based on several factors. The new changes will also bring consistency to rental subsidies nationwide, leading to a $132 increase for 41,000 recipients.
Kevin Thompson, CEO of 9i Capital Group, called the update “a welcome relief” for those affected by the previously burdensome and outdated policies.
Easier Access to Benefits
The changes should also make it easier for Americans to qualify as public assistance households, potentially increasing their benefits. Martin O’Malley, the commissioner of Social Security, stated, “By simplifying and expanding our policies, we’re making SSI smarter, removing barriers to accessing payments, and reducing the burden on the public and agency staff.”
Looking Ahead to 2025 Payments
On October 10, seniors and other Social Security recipients will learn their 2025 payment amounts. The new Cost of Living Adjustment (COLA) will be announced, with predictions for a lower increase of 2.5%, down from 3.2% in 2024 and 8.7% in 2023, due to cooling inflation.
Concerns About Long-Term Sustainability
While the increased benefits are widely seen as a positive development, some express concern over the long-term sustainability of the system. Thompson explained, “The bigger issue is ensuring that the system can support beneficiaries over the long haul. Without a comprehensive overhaul, the SSI system risks future reductions in benefits, which could ultimately harm the people it’s designed to help.”