Next increase in Social Security checks for retirees- Announcement date to be determined

Starting in October 2024, some Social Security beneficiaries will see an earlier-than-usual increase in their benefits due to changes in the way the Social Security Administration (SSA) calculates income. This change is primarily for participants in the Supplemental Security Income (SSI) program, which aids seniors with insufficient income and individuals with disabilities like blindness. The SSA will stop including certain food assistance payments in income calculations, which will lead to higher benefits for some recipients.

New Rule

As of September 30, 2024, the SSA will no longer count informal food assistance from friends, family, or community support when determining SSI eligibility. This rule change will allow thousands who previously didn’t qualify due to income limits to now receive benefits. It will also benefit those who were receiving less because this assistance was included in their income calculations. The SSA noted that this change removes a significant barrier to receiving SSI, simplifying the process for applicants and beneficiaries alike.

Simplified Reporting

Monthly SSI payments are based on the recipient’s income and resources. The new rule simplifies the process by reducing the need to report informal food assistance, thereby potentially increasing monthly payments. Currently, the average monthly SSI payment is $698. Individuals receive $943, and couples receive $1,415 per month.

Eligibility

To qualify for SSI benefits, applicants must demonstrate limited income and meet resource limits, which in 2024 are set at $2,000 for individuals and $3,000 for couples. Income is broadly defined by the SSA to include anything acquired that can meet basic needs for housing or food. This includes wages, Social Security, pensions, unemployment benefits, and financial support from family or friends.

Eligibility also considers food and shelter obtained for free or at low cost. The maximum monthly income an individual can earn while remaining eligible for SSI is $1,971 if all income is from wages, and $963 if from other sources. For couples, these limits are $2,915 from wages and $1,435 from other sources.

2025 COLA Impact

In addition to these changes, SSI recipients will also benefit from the 2025 Cost-of-Living Adjustment (COLA). Analysts predict a 2.63% increase in benefits due to the latest COLA projections, which reflects a decline in inflation rates. This is slightly less than the current 3.2% COLA.

Here’s how the benefits could look with the anticipated COLA increase:

Recipient Type	Current Average Benefit	Post-COLA Increase (2.63%)
Average	$698	$716
Individuals	$943	$968
Couples	$1,415	$1,452
Essential Person	$472	$484

While these figures are based on projections, the official increase will be announced in October 2024. Beneficiaries should keep an eye on these announcements to understand the exact changes to their benefits.

Changes in how the SSA calculates income and the anticipated COLA increase demonstrate ongoing efforts to improve support for SSI recipients. These adjustments aim to simplify the process, increase benefits, and ultimately provide better financial stability for those in need.

The impact of these changes will be significant for many, providing much-needed relief and support. As always, staying informed about these updates is crucial for beneficiaries to maximize their benefits and financial well-being.

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