The cost of living adjustment (COLA) is typically announced in October and implemented in January of the following year, increasing the benefits that recipients receive. However, some beneficiaries of the Supplemental Security Income SSI program will see an increase in their payments earlier than usual. This change comes as the Social Security Administration (SSA) has decided to exclude certain food assistance payments from an individual’s income calculation, which directly impacts their benefits.
Starting in October 2024, some Social Security checks will increase for SSI participants, a program designed to assist older individuals with insufficient income and people with disabilities, such as blindness.
The new rule that will increase SSI benefits in 2024
Beginning September 30, the SSA will stop considering food assistance received from friends, family, or others in the community when calculating SSI beneficiaries’ income. This change means that thousands of people who previously did not qualify for SSI benefits because their income exceeded the limit will now be eligible.
Additionally, those who are already receiving benefits may see an increase in their payments. According to the SSA, “the new policy removes a significant barrier to receiving SSI, as applicants and beneficiaries receive informal food assistance from friends, family, and community support systems.”
This measure will streamline the process for applicants, beneficiaries, and SSA employees by reducing the amount of information that must be reported about received food assistance. As a result, this will lower the monthly payments that need to be processed. Currently, SSI beneficiaries receive up to an average of $698 monthly, while individual applicants and couples can receive $943 and $1,415 per month, respectively.
Eligibility requirements for receiving SSI payments
To qualify for SSI benefits, applicants must demonstrate that they have limited income and meet the program’s resource limits. In 2024, these limits cannot exceed $2,000 for an individual and $3,000 for a couple. According to the SSA, income includes “anything an individual receives in-kind or cash that can be used to meet their basic needs for shelter or food.” This encompasses:
- Earnings from work or self-employment
- Social Security payments, pensions, unemployment benefits, and financial support from family or friends
- Part of a spouse’s income if married
- Food and lodging received for free or at a reduced cost
Therefore, beneficiaries may be eligible to receive both types of Social Security payments as long as their total income, including Social Security benefits, does not exceed the SSI income criteria. It is important to remember that the current maximum monthly income an individual can earn is $1,971 if all their income comes from wages, and $963 if they receive money from other sources.
Additionally, the maximum monthly income is $2,915 if income comes solely from wages and $1,435 if it comes from sources other than wages.
Additional increase in SSI payments due to the 2025 COLA
In light of declining inflation rates, analysts forecast a cost of living adjustment (COLA) of 2.63% for next year’s Social Security benefits, based on the latest COLA projections. This increase will be smaller than the current COLA of 3.2% if it takes effect in October, when the COLA is typically announced at the end of the year.
If the 2.63% COLA is established, beneficiaries should be aware that their Social Security benefits will increase in the following ways, although the official increase will not be announced until October.
Impact of the cost of living adjustment (COLA) on SSI payments
The cost of living adjustment (COLA) is an annual increase applied to Social Security benefits to maintain beneficiaries’ purchasing power amid inflation. Although the COLA is officially announced in October, its impact is felt starting in January of the following year. In 2025, the COLA is expected to be 2.63%, which will provide a slight increase in SSI benefits. This adjustment is crucial to helping beneficiaries maintain their standard of living despite rising prices.
Preparing for changes in SSI benefits
It’s essential for SSI beneficiaries to be prepared for these changes and understand how they will affect their monthly payments. Here are a few steps you can take to ensure you are ready for the new adjustment:
- Review your eligibility and benefits: Make sure to review your eligibility for SSI and the benefits you are receiving. If you’re unsure how these changes will affect you, contact the SSA or visit their website for more information.
- Update your information with the SSA: Keeping your information current with the SSA is crucial. This includes any changes in your income, resources, or living situation. Keeping your information up to date ensures you will receive the correct amount of benefits and avoid any interruptions in your payments.
- Plan your finances: With the changes in SSI benefits, it is important to plan your finances accordingly. Create a budget that considers the new amounts of your benefits and adjust your expenses accordingly. This will help you maintain control of your finances and ensure you can cover your basic needs.
Additional resources for SSI beneficiaries
The SSA offers a variety of resources to help SSI beneficiaries understand their benefits and how policy changes may affect them. Here are some helpful resources:
- SSA Website: The SSA website provides detailed information about SSI, including eligibility requirements, benefit amounts, and how to apply for assistance. Visit the website for the most up-to-date information.
- SSA Help Centers: SSA help centers are available to provide in-person assistance. If you have questions or need help understanding your benefits, visit an SSA help center in your area.
- SSA Customer Service Line: The SSA also offers a customer service line where you can get help and answers to your questions. Call the customer service line to speak with a representative who can assist you with your specific needs.