A change in Social Security claims is going into effect at the end of the month. Nearly 70 million people receive Social Security payments year after year, and some are eligible to receive Supplemental Security Income (SSI) if they are disabled or elderly Americans who meet certain eligibility requirements.
One of the eligibility requirements, to qualify for SSI payments, says that citizens who wish to apply cannot earn more than $1,971 in income per month to be entitled to the payments. However, that rule is having a slight change.
New Social Security Eligibility Rules Starting September 30
Starting next September 30, food benefits will no longer be taken into account in the income that is considered necessary to have access to SSI benefits. This means that programs such as the Supplemental Nutrition Assistance Program (SNAP) will no longer prevent a person from receiving Social Security payments.
“The decision not to count food benefits toward eligibility will not only expand the number of those who can receive SSI, but also potentially add support to those who already receive it,” said Alex Beene, a financial education instructor at the University of Tennessee at Martin. “For years, food has been considered unearned income, which reduces the amount of help SSI recipients receive. Removing this condition as an eligibility requirement will help provide additional funds to some people who have had their benefits reduced in the past due to this situation.”
Current Regulations and the Impact of the New Rule
Under current regulations, food, and housing subsidies could be considered unearned income, which would reduce the amount that can be received in subsidies. When the new rule takes effect at the end of September, it could give Americans one more chance to receive subsidies every month or increase the amount to which recipients are currently entitled.
The average SSI payment is $943 a month, but that figure could increase after the change in new rules about food benefits is made. With Americans still facing a 2.9 percent inflation rate as of July, the increase in benefits could have a major impact on SSI recipients.
Social Security COLA Adjustments and Future Predictions
Social Security benefits increased 3.2 percent this year, according to the cost of living adjustment, also known as COLA increment. However, experts cautioned that older people and people with disabilities should not expect such a high COLA next year.
The American Association of Retired Persons (AARP) predicted that next year’s COLA will be between 2.75 percent and 3.25 percent to account for inflation. However, long before the lower COLA was forecast, analysts had raised concerns that the current COLA estimate does not accurately report rising costs for seniors.
“The decision of whether the annual COLA is appropriate for a specific retiree to ensure purchasing power equal to the previous year is very specific to each retiree’s living situation, both in terms of expenses and other sources of income,” Jonathan Price, national retirement practice leader at employee benefits consulting firm Segal, previously said.