The Social Security Administration (SSA) has announced an important change that will impact many Supplemental Security Income (SSI) beneficiaries. Starting September 30, food benefits will no longer be counted as income when determining SSI eligibility.
This change could open the door for more people to qualify for SSI, as well as increase the payments for those already receiving benefits. The move comes as the SSA continues to refine its programs, which currently serve around 70 million Americans.
New Rule
This new rule removes food assistance, such as those provided by the Supplemental Nutrition Assistance Program (SNAP), from the calculation of unearned income for SSI recipients. Previously, food benefits were considered unearned income and could reduce the amount of SSI someone could receive.
By eliminating this consideration, SSI recipients could see an increase in their monthly benefits, or more individuals may now qualify for SSI who previously didn’t due to their food benefits pushing them over the income limit.
According to Alex Beene, a financial literacy expert, removing food benefits from the equation can offer greater financial support to those in need. The SSI program, which targets disabled individuals and older citizens with limited income, sets the current income limit at $1,971 per month. Once the new rule goes into effect, more Americans may find themselves eligible for assistance, or those already on the program may receive larger checks.
Change
For many Americans, SSI is a critical source of financial support. The average monthly SSI payment is $943, but with food benefits no longer counting as income, some recipients may see that amount rise.
This change comes at a time when inflation remains a concern, currently sitting at 2.9% as of July 2024. Additionally, Social Security payments increased by 3.2% this year due to the annual cost-of-living adjustment (COLA).
Though COLA adjustments are designed to help beneficiaries keep pace with inflation, experts suggest next year’s increase may be lower, projected to fall between 2.75% and 3.25%. Rising costs, particularly for seniors, remain a concern.
According to Jonathan Price of benefits consulting firm Segal, whether a retiree’s COLA adjustment preserves their purchasing power depends on their unique financial situation, including living expenses and any additional income streams.
Payment Amounts
| Recipient Category | Monthly Payment |
|---|---|
| Individual (average) | $943 |
| Individual (maximum) | $943 |
| Couple (maximum) | $1,415 |
| Essential Person (EP) | Additional $472 |
COLA Adjustments
While the changes to food assistance rules will benefit many SSI recipients, next year’s COLA adjustment may not be as favorable. The COLA is calculated based on inflation, and with inflation expected to moderate, next year’s increase may not match this year’s 3.2% bump.
However, even small adjustments can have a big impact on seniors, disabled individuals, and others who rely on these benefits. The ongoing debate around whether COLA adjustments truly reflect the rising costs faced by seniors remains. While COLA helps, it’s important for recipients to consider their full financial picture and perhaps seek additional assistance or advice.
Payment Schedule
The Social Security Administration maintains a clear payment schedule for SSI beneficiaries. Payments are usually made on the first of the month, with some adjustments for holidays or weekends. For example, when the first of the month falls on a weekend or holiday, payments are made earlier.
Here’s the SSI payment schedule for the remaining months of 2024:
| Month | SSI Payment Date | Advanced Payment Date |
|---|---|---|
| August | August 1st | August 29th (for September) |
| October | October 1st | October 31st (for November) |
| December | December 1st | December 31st (for January) |
Beneficiaries who applied before May 1997 will continue to receive payments on the third of each month, regardless of weekends or holidays.
Who Qualifies
SSI payments are calculated based on an applicant’s income, resources, and living situation. Individuals must meet financial eligibility requirements to receive benefits. Currently, the maximum monthly payment for individuals is $943, while couples can receive up to $1,415. Those with an essential person (someone living with and helping the recipient) can receive an additional $472 per month.
For those unsure whether they qualify, it’s worth exploring your options and possibly consulting with a financial advisor or Social Security expert. The new rule regarding food benefits could tip the scales for those previously ineligible.
The new SSI rule, effective September 30, represents a significant shift in how food benefits are considered in the SSI eligibility process. By removing food assistance from income calculations, more people may qualify for SSI benefits, and current beneficiaries could see an increase in their monthly payments. This change is timely as inflation continues to affect daily living costs. Staying informed and understanding your benefits is crucial in maximizing financial stability.
FAQs
What changes will the new SSI rule bring?
The new rule removes food benefits from the SSI eligibility income calculation.
When does the new SSI rule take effect?
The rule becomes effective on September 30, 2024.
How much is the average monthly SSI payment?
The average monthly payment is $943.
What is the current SSI income limit for eligibility?
The current income limit is $1,971 per month.
When will SSI payments be made next?
The next SSI payment is scheduled for October 1, 2024.
