Social Security $13,590 for the Low Income – Very Important Details

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Social Security $13,590 for the Low Income - Very Important Details
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$13,590 each and every year for the low income why this number is so incredibly important and influential. I have all the details and what you need to know right here on this topic.

As I am your one and only daily advocate, and I am very much dedicated to you and this community to break down all the latest details as they’re hitting the wire each and every day. There’s a lot going on right now, and I want to make sure that you’re staying updated with all of these moving parts, especially all of these new programs, money, benefits, and anything else that may be popping up right now that you can take advantage of during this very confusing time.

So I do completely recognize that the vast majority of you right here in this community are low income or fixed income beneficiaries of Social Security, including retirement disability, SSDI survivors, SSI, VA, RRB, or any other types of fixed income benefits, or like I said, low income. Therefore, we need to understand what these numbers represent very clearly, because honestly, this is all going to impact the low-income and fixed income beneficiaries. That number that I mentioned at the beginning of the topic, $13,590 each and every year is actually a very, very important number. Because here’s the thing. Benefits are pegged off of this number.

Eligibility for programs or other benefits are pegged off of this number. It’s a very important number, especially for the low income and the fixed income. Also, I do want to throw this out there as well. Any potential raises coming to benefits, as in all of those benefits I mentioned a second ago, any type of substantial raises to these benefits, once again, are going to be pegged off of this number. Again, the higher that this number gets, the better and the more beneficial it becomes for the low income and the fixed income.

So as you can see here, it’s a pretty important number. I want to run through all the details on this. I want to break everything down for you, let you know what this actually means, as well as what raises could look like for benefits going forward, as well as what this number actually means for the low income and the fixed income. So we have a lot of different details to walk through on this topic, as well as some numbers and the full breakdown of everything for you, including all the beneficiaries that mentioned. And I do have some specific numbers for those people receiving Social Security, retirement SSDI and survivors.

And then, of course, some other specific numbers in regards to SSI beneficiaries as well. Right. So as you can see here, it’s pretty important. One more thing I want to quickly throw out there, the inaction of Congress over the last year or so. Last year, in 2021, the simple fact that Congress did not take action actually means that this number has gotten bigger.

Therefore, a bigger number means more benefits for you. It’s a pretty good thing. So simply because Congress did not act last year, it actually means that potentially more money would be coming to you. Again, a pretty good thing right there. Right.

And one more thing I want to throw out there as well. This number again, we have to remember, this number represents your benefits, your lifestyle, your livelihood, your money, and your future. Therefore, this is a very important thing that we need to understand. Right. Because your monthly benefits I would be willing to bet the vast majority of people and honestly, the statistics and all the reports are showing this as well, that the vast majority of people who live on a fixed income, the fixed income on a monthly basis accounts for the vast majority of the income for that individual.

The reports are showing all this. So I’m thinking that probably a lot of people out there again, I can’t assume I don’t know everybody’s situation, everybody’s situation is very different. But I do know because the reports out there are showing that somebody receiving Social Security retirement or SSDI or SSI that accounts for the vast majority of the monthly income. And again, I’m just speaking from the reports. So anyway, let’s get into it and talk about what this number is and what this actually represents.

All right. So let me talk through the details on this, and then I want to break this down as to what this could actually mean for your monthly benefits and how this could actually translate into a much higher benefit raise going forward. All right, here’s what it comes down to. $13,590 is the federal poverty line in 2022 right here, right now. Last year, in 2021, it was $12,880, a difference of $710 over last year.

So the federal poverty line has actually risen by $710 here in 2022, over last year, 2021. That’s a good thing. That’s a really good thing. Because like I said, the federal poverty line, this number a lot of times kind of pegs benefits. It pegs eligibility, as well as a lot of other things for the low income and the fixed income.

All right, so let’s get into this right now and talk through the details. So, number one, we do know that there’s a few pieces of legislation out there right now that are actually pointing toward potential benefit raises for beneficiaries. Let me tell you the breakdown on this, because this is actually very important to understand. Let’s quickly talk about Social Security. Now, this would include retirement SSDI and survivors.

Those of you receiving SSI, don’t worry. I’ve got something for you here. Coming in just a second. All right. But this one is just specific to the Social Security beneficiaries.

Here’s the deal. We know that the Social Security 2100 is out there floating around in the wings right now. Right? Well, as a result of that, one of the provisions, as well as the plan out of the President and even a plan out of Bernie Sanders wants to raise the minimum guaranteed benefit up to 125% of the federal poverty line. Let me break that down for you.

Last year, in 2021, a multiplier put onto the federal poverty line last year would have given you a monthly benefit of $1,341 each and every month. The federal poverty line last year multiplied by one point 25, came up to $1,341 each and every year, or $16,100 throughout the course of the entire year. However, now that the federal poverty line has adjusted up to $13,590, we’re actually working with higher numbers. Now, let me break it down for you. Here’s what it comes out to $13,590 over the course of the entire year.

But multiplied by that one point, 25 comes up to $16,987 for the year. Again, not a bad number. Right. But let’s divide that out on a monthly basis. Now we go out to rather than being 1341 from last year.

Now it’s up to $1,415 this year. Right. So a pretty nice little raise there a raise of $74 each and every month. Right. So again, that is what it comes out to as a result of some of these plans out there right now to raise the minimum guaranteed benefit for Social Security beneficiaries up to 125% of the federal poverty line.

So simply because Congress did not take action last year and implement this, that just means effectively it turns into about a $74 raise every single month this year over what it would have been last year. So now it would be $1,415 every single month. Makes sense. All right, cool. Let’s move on to now really quickly and talk about SSI.

And then, of course, I’m going to wrap this all up and basically include everybody who is low income or a fixed income beneficiary and tell you what this all means and why this number is so important, and what it actually means for benefits going forward. Okay. So all right, let’s quickly run through SSI. All right. So SSI beneficiaries, Supplemental Security Income there is out there right now the piece of legislation called the SSI Restoration Act.

Within that, they want to raise benefits up to 100% of the federal poverty line. Let me tell you the numbers once again. Remember, the federal poverty line is $13,590 each and every year divided out as of right now, I should say as of 2022. Remember, last year it was $12,880. Again, an effective raise of $710 over the course of the year.

All right. Anyway, let’s talk this through on a monthly basis now. So $13,590 of annual income divided by twelve months comes out to $1,132 each and every month, which would ultimately be an effective raise of $290 every single month versus the actual maximum benefit right now for SSI beneficiaries. The maximum benefit right now for SSI beneficiaries is $841. Well, if we were to raise that up, it would actually be a $291 raise, $841 up to $1132 every single month, as in $1,132 every single month is a difference of $291.

So as you can see here, it’s a pretty big difference. The simple fact once again that Congress did not act on this last year, the raise would have been last year. If they would have actually implemented this, it would have been a raise of $232 each and every month. So simply because they didn’t act, it’s about what is that $59 raise? I think I’m doing the mental math correctly.

Yeah. It’s a $59 raise every month simply because Congress didn’t act last year. Right. So I always feel like when you don’t act, you got to pay. Right.

In this case, Congress, they didn’t act, therefore pay up. Right. And it’s actually going to be in the benefit of the fixed income beneficiary anyway. Ultimately, it’s kind of a cool thing. So the federal poverty line being adjusted to that $13,590 ultimately results in a pretty substantial and honestly, a pretty healthy raise for a lot of people.

This would be actually very beneficial for millions and millions of beneficiaries.

This would be some pretty cool stuff. Right. Just think of what that would do. Let me give you a quick example really fast here. Let’s just say that you’re an SSI beneficiary.

Right. You’re getting the maximum benefit, $841 every single month. What would it do to your life if all of a sudden your benefits were raised to the federal poverty line and they started giving you an extra $291 a month or a maximum of $1,132 every single month? Would your life be changed a little bit or would it be the same old? Well, I’m guessing it probably be a little bit easier, right?

Nearly $300 more per month, I’m guessing, would probably be a little bit of a relief to a lot of people. Don’t get me wrong, more is always better. I completely understand. More than that would certainly help out a lot more. But if you got an extra nearly $300 a month, I think all of us could probably agree that would be a pretty nice little change for a lot of people.

It’d be the difference of having a full fridge throughout the course of the year and pantry or versus kind of a slim looking fridge and pantry throughout maybe the second half of the month or maybe the vast majority of the month. Right. It’s a difference of being able to maybe run your air conditioning throughout the entire summer versus just cycling it a few times throughout the day to maybe get a little cold air pumping throughout your house. Right? Or maybe the difference of turning the heat from 65 to maybe 69 or 70 degrees during the colder months of the year.

You kind of get what I’m saying. I think we all understand this, right? We’re all on the same page here. Anyway, that’s the difference between the federal poverty line from last year and the federal poverty line this year and what it would actually mean for benefits going forward. A pretty big change.

Now, let me throw this out there really quickly. I want to wrap this video up because I know it’s getting a little bit long here. I try to make my topics relatively short and just try to make them as quick as possible, just because I want to be as respectful of your time as I possibly can. All right. Let’s throw this out there really quickly as well.

The federal poverty line is also a measure that actually indicates how eligible somebody is for benefits like Snap Supplemental Nutrition Assistance program, as well as other things like TANF Temporary Assistance for needy Families, as well as the ability to get maybe housing vouchers. Take advantage of section eight or a variety of other things out there. Programs like Chip, the program for food benefits for children, things like this, or maybe WIC women, infant children, things like this. Literally, the programs are on and on and on. There’s so many programs out there that are focused on the low income and the fixed income.

And a lot of these are pegged off of your income in relation to the federal poverty line. A lot of times in order to draw on these programs, they say your income must be at the federal poverty line or 125% of the poverty line or less, or maybe 150% of the federal poverty line or less. Or maybe they say something like your income can be up to 200% of the federal poverty line. It depends on the programs. Each program is a little bit different.

But what I’m saying is essentially all of the programs have some kind of parameters wrapped around them saying your income must be at or below 100%, 125%, 200% of the federal poverty lines. So it’s a very important number that actually indicates the eligibility for a vast majority of the programs that are out there for the low-income kind of makes sense. Anyway, I hope that makes sense for you, but hopefully, this gave you the breakdown of why this number is so important and what it could actually mean going forward for the low income and the fixed income. Anyway, I know we went through a lot of numbers here. If you have any additional questions or feedback or concerns, anything like that, please feel free to leave those down below in the comments section.

I do my best to answer as many questions as possible. I do my best to read as many questions as possible and again, make dedicated videos as I see fit based on the comments and questions coming in down below. So again, thanks so much for being part of this community. I really do appreciate it. There are so many amazing people here.

I read your comments each and every day. So many nice comments. Thank you. I really do appreciate it. I’m here to help you out in any way that I possibly can.

Please enjoy your day, stay safe and I’ll catch you again later.

 

 

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