SSI 2023: Everything You Need To Know

Stimulus Check Disability Benefit
Stimulus Check

Millions of SSI recipients will get their second check, now worth $914 and enhanced for 2023, in only two days.

The rewards will start to be sent out on February 1st, more than a month after beneficiaries got their final payments on December 30. SSI recipients normally get their payments on the first of every month, however, weekends and holidays might cause exceptions.

The value of the payments for 2023 has increased from the $841 that beneficiaries received each month in the prior year to $914. Due to the 8.7% cost of living adjustment, this has happened (COLA). Along with federal benefits, 33 states additionally offer supplemental payouts.

What is SSI?

Although last year’s inflation impacted a lot of individuals, consumer spending remained stable and the unemployment rate remained admirably low.

Currently, a possible recession in 2023 is being discussed. Some financial analysts are so certain that the economy would suffer in some way during the next year that they are practically certain of it. In the past, officials turned to stimulus payments when unemployment was high and the economy needed a boost. At various points throughout both the epidemic and the Great Recession, which lasted from 2007 to 2009, stimulus payments were made. By 2022, the economy had already recovered from the epidemic, thus no stimulus payments were required.

COLA Impact On Social Security

The cost-of-living adjustment (COLA), which will increase by 8.7 percent in 2023, determines Social Security payments for retirees. The largest payout per month is $4,555, and beneficiaries get $1,827 on average.

SSI recipients received their first payment of the year on December 30 since the first of the month fell on a Sunday and a holiday in 2023. Beneficiaries of SSI may continue to count on getting their payments on the first of the month for the rest of the year.

The third round of January Social Security payments, which could total up to $4,555 for claimants, is anticipated to reach bank accounts the following week. The Social Security payment schedule is determined by the recipient’s birthdays.

Those with birthdays in the first through the tenth of the month were intended to receive their pay on the eleventh, while those born in the eleventh through the twentieth did receive their pay on the eighteenth.

Anyone whose birthdate falls after January 21 will receive their final round of Social Security payments in the mail on Wednesday, January 25.

SSI Benefits In Jeopardy

SSI benefits are anticipated to drop by 23% by 2035. The Social Security Administration predicts that benefits will be paid out with a 23% reduction by 2035. This is based on program predictions without any new funding.

The ability of future Americans to have a comfortable retirement may be substantially reduced given that Social Security makes up a sizeable amount of post-retirement income.

46 cities and states have established their own universal basic income schemes for their residents, despite significant inflation rates. Residents will have complete freedom to use UBI. It is made up of several periodic payments.

Some are paid on a monthly or annual basis and have income requirements. The Sun has discovered at least 40 instances of UBI, and in early 2023, more cities might approve similar programs. According to Investopedia, the Social Security Administration made $7.9 billion in incorrect payments in 2019.

Fraud includes submitting false claims or failing to inform the agency of information that would have impacted eligibility. Fraud also encompasses a member of a person’s family or close friend abusing or exploiting benefits on their behalf.

Low-wage workers are starting to experience the effects of financial stress as costs rise. According to a Financial Health Network study, low-income professions are those that pay up to $35,360 yearly or less than $17 per hour.

Most low-wage workers struggle to save money, obtain quality insurance, and struggle to make ends meet. 13% of low-wage workers claim to be in excellent financial positions, according to the research.

Vermont is one of the states that has taken unilateral action. The higher child tax credits that were set to expire at the end of last year were caused by Congress’s inability to extend them. Republican Governor Phil Scott authorized a $1,000 child tax credit for each child under the age of five for households with income of $125,000 or less.

A family earning above $125,000 would lose $20 for every $1,000 over that threshold. According to the SSA website, people who receive Social Security or SSI may be qualified for the CTC.

You can file a claim with the IRS for the credit based on the qualified children. A qualifying individual is not entitled to SSDI and Social Security retirement benefits at the same time. However, a person may be eligible for both Supplemental Security Income (SSI) and SSDI benefits at the same time.

If you believe you qualify for both SSDI and SSI, compare the monthly benefits to determine which would give you the most cash. Around 60 million people receive Social Security benefits each year. To qualify, you must be elderly or handicapped. Roughly 90% of persons 65 and older get the benefits, which make up about 33% of their income.

Social Security benefits can be started at age 62, but the payments don’t start to increase until age 67. When benefits are delayed between your full retirement age (FRA) and age 70, you begin to accrue delayed retirement credits that raise your overall benefit. Benefits for retirees are at their highest at this age since credits cease at 70.

Your benefit payout will initially go up each month. If your FRA is 67, the Social Security Administration estimates that delaying benefits until age 70 would result in monthly payments totaling 124% of your entire amount. Delinquent borrowers’ Social Security payments will be decreased by around $2,500 a year when garnishments resume, according to recent data from the Center for Retirement Research at Boston College. This is equivalent to 4% to 6% of the average household’s income.