How Much Will SSI Checks Be in 2024?

In January 2024, individuals who received Supplemental Security Income (SSI) received an increase in their monthly payments.  The increase in SSI payments is tied to the Social Security Administration’s annual cost-of-living adjustment (COLA), which is designed to help the payments keep pace with inflation. This blog post explains the SSI payment increase for 2024, how it compares to previous years, and what it means for beneficiaries.

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Understanding SSI and the COLA

Supplemental Security Income is a federal program administered by the Social Security Administration (SSA) that provides financial assistance to elderly, blind, and disabled individuals who have limited income and resources. The amount of SSI benefits a person receives depends on various factors, including any other income they receive, their living arrangements, and their dependents.

The cost-of-living adjustment, or COLA, is an annual adjustment to SSI payments that reflects the change in the cost of living, as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during the third quarter of the previous year. This adjustment is intended to keep the purchasing power of SSI and other Social Security benefits with any increase in prices of life’s necessities.

SSI Payment Increase in 2024

For 2024, the Social Security Administration has announced a COLA of 3.2 percent. This COLA adjustment was considerably lower than the boost that was issued for 2023 which is one of the highest increases in recent decades. The COLA is determined in direct response to the inflation rates that have impacted the economy, notably affecting costs related to housing, food, and medical care.

With this adjustment, the standard monthly payment for an individual SSI recipient will increase from $914 in 2023 to approximately $943 in 2024. For couples where both partners receive SSI, the benefits will rise from $1,371 per month to about $1,415. These changes will take effect starting with the payments distributed in January 2024.

New Rules Excluding Food From ISM September 2024

The Social Security Administration announced a new rule that will no longer include food in the agency’s In-kind Support and Maintenance (ISM) calculations each month. The former rule reduced an SSI recipient’s monthly benefit payment by the value of any in-kind contributions of food or shelter they received. The new rule starting in September 2024 will no longer count food as in-kind contributions that reduce a person’s benefit payment.

This new rule makes good sense because the previous rule often had the effect of punishing SSI recipients who were fortunate enough to have a source of food support. This is a welcome reform for millions of SSI recipients.

Impact of the Increase

The increase in SSI benefits for 2024 will provide essential relief to recipients. Many SSI beneficiaries live on a fixed income, and their financial situation is often precarious, with little room for unexpected expenses. The COLA helps protect these individuals from the impact of rising prices, allowing them to afford basic necessities such as food, shelter, and healthcare.

Furthermore, the increase in SSI payments could have several broader implications:

1. Economic Stability: By providing more disposable income to some of the most financially vulnerable populations, the increase in SSI benefits may help stimulate economic activity at the local level.
2. Health and Wellbeing: Improved financial security can lead to better health outcomes. With higher monthly benefits, recipients may be less likely to forego necessary medical treatments due to cost concerns.
3. Reduction in Poverty: Social Security benefits, including SSI, play a significant role in reducing poverty rates among the elderly and disabled. The increase in benefits may help lift more people above the poverty line.

Considerations for SSI Recipients

While the increase in SSI benefits is undoubtedly positive news, recipients should consider a few important aspects:

1. Tax Implications: It’s crucial for SSI recipients to understand how increased payments might affect their tax situation. SSI benefits are not taxable, but if a person receives income from other sources, the total income could impact the tax bracket into which they fall.
2. Eligibility for Other Benefits: Recipients should also be aware of how the increase in SSI payments may affect their eligibility for other government assistance programs, such as Medicaid, food stamps, or housing assistance. Each program has its own set of income and asset limits that could be impacted by higher SSI payments.
3. Financial Planning: With the increase in monthly payments, now is a good time for SSI recipients to review their financial plans. Budgeting carefully and planning for long-term financial needs is essential, especially in an uncertain economic environment.

Conclusion

The 3.2 percent increase in SSI benefits for 2024 marked a significant step in adjusting the support provided to some of the most vulnerable populations in the United States. This adjustment is not just a reflection of rising costs but a necessary measure to ensure that SSI recipients can maintain a basic standard of living amidst economic fluctuations.