Social Security Big Raise to Monthly Benefits – Social Security, SSDI, SSI

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Social Security Big Raise to Monthly Benefits - Social Security, SSDI, SSI
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Big raise to monthly benefits for millions of beneficiaries, including Social Security, retirement, disability, SSDI survivors, and SSI. We have a lot to talk about and some exciting updates on this topic.

All right. It has been a long time coming here, but the word out there right now is that within a matter of just weeks from now, Congress may be bringing a couple of key important pieces of legislation to the floor in the House of Representatives, and they may be opening these things up for debate, which would actually be a really good thing because these pieces of legislation do actually contain some pretty nice raises and benefits for millions of beneficiaries receiving those benefits that I mentioned at the beginning of the video. Now, by the way, these benefits encompass about 70 million beneficiaries between retirement benefits, SSDI survivors, and SSI, about 70 million people. So that’s a lot of people right there. And these individuals are very, very important.

So we’ve got to continue watching all these benefits very closely. Now, the timing on this, again would be a little bit better if it would have been a few months ago. But the deal is I guess late is better than ever, especially with the time right now that we’re in where prices continue to rise very rapidly. Inflation is digging into everybody’s money right now. The benefits are not going as far.

So the timing on this could not be better. But realistically, it would have been better several months ago. But I guess late is better than ever. All right. But anyway, let’s talk about what the word is out there right now, as far as what Congress may be bringing to the floor here relatively soon and how if these packages or these pieces of legislation are actually passed, what it would actually mean for these millions of beneficiaries going forward, including a higher monthly benefit for a lot of people.

That would be a really good thing. All right, so all of this is revolving around two key pieces of legislation. Number one, the Social Security 2100 introduced by John Larson, and the SSI Restoration Act, which was introduced by a handful of Democratic senators. Now, both of these pieces of legislation would be really, really good if enacted. And provided that Congress actually does get these passed through.

However, it looks like they want to bring these to the floor and open this up simultaneously and start working on them at the same time in Congress here within a matter of just weeks. So let’s quickly talk about these provisions just a little bit here and talk about what is in them. I can always go into these in more detail in another topic, but like I said, the Social Security 2100 pertains to those people are receiving Social Security benefits. This one does not include SSI. However, those of you receiving SSI don’t worry, because the SSI Restoration Act is all about SSI and does not include Social Security.

But confusing, right? Aren’t they all Social Security? No, they’re not all Social Security. Ssi is technically not Social Security benefits, although it is administered by the Social Security Administration. Right.

However, we can also discuss that more in another topic. But I think all of us here in the community probably understand the differences between these programs. However, one quick side note as well, I want to throw this out there because this is also a pretty good thing and also pretty encouraging as well. So just a few weeks ago, Elizabeth Warren, who happens to be a Democratic Senator, was out mentioning the SSI program and the importance behind the SSI Restoration Act. She also mentioned that 40% of these beneficiaries receiving SSI are living in poverty.

Well, okay, that might be accurate, but I honestly believe that number is much higher than just 40% because as a result of the SSI program, your income is very limited. In fact, it’s very low as a result of that program. If you’re receiving SSI Supplemental Security Income, your income pretty much needs to be below the poverty line in order to be eligible for these benefits. At the same time, you can’t have very much in savings, $2,000 as an individual, $3,000 as a married couple. Otherwise, you know the drill behind this, right?

If you have any more savings than that, any more money than that, they start to garnish your benefits. So even though she said 40% of SSI beneficiaries are living in poverty, the moral of the story is a large percentage of people are living in poverty, and she was showing her support for the SSI Restoration Act and how this bill needs to work their way through Congress and ultimately raise benefits for millions of beneficiaries. By the way, the SSI Restoration Act has some pretty cool things in there. Number one, they do want to raise the benefit on a monthly basis, up to 100% of the federal poverty line. Well, check this out.

As well, as of this year 2022, the federal poverty line has now been lifted up to $13,590 versus the $12,880 from last year, a raise of $710. Well, that would also raise the monthly benefits from the current level of $841 per month, which is well below the poverty line as of right now, on a monthly basis, last year, the federal poverty line would have been $1,073 each and every month to raising it up now to $1,132 each and every month. Now, who knows if they’ll actually raise it up to the new federal poverty line on a monthly basis or if they’ll come forward and say, oh, no, it has to be the line from last year, which is the $1,073, regardless of how we cut it, it would still be a potential raise of anywhere between $232 per month for SSI beneficiaries from the current maximum level of $841 per month right now, or possibly even up to $291 each and every month. So you’d be looking at a pretty substantial raise on an ongoing monthly basis. By the way, it’d be about 30% of a raise for SSI.

So that’d be pretty big for a lot of people. I mean, that would be huge, right? That would be kind of a game-changer, although at the same time, we can all recognize at the same time that the benefits are still much, much lower than where they really need to be for many people, especially with elevated prices on literally everything right now. Now, let’s take a couple of minutes here or a little bit of time anyway and talk about the Social Security 2100. Now, this is one that John Larson, who is a Democratic representative, has been introducing for several years now.

However, as of right now, this bill or this piece of legislation already has over 200 co-sponsors in the House of Representatives. It has a lot of support. However, this piece of legislation does have multiple different provisions within it. It has about a dozen different provisions within it to actually raise benefits, expand benefits, and do all kinds of things for Social Security beneficiaries. A lot of really good things in there, a lot of really good stuff in there, including adjusting the way that they actually calculate the cost of living adjustment.

Right. Because that is based on some CPI data. In other words, consumer price index inflation data, but rather, they want to have a hinged around the CPIE consumer price index for the elderly, which better reflects the actual cost of living and those price increases on things that Social Security beneficiaries spend their money on a regular basis. Therefore, it would actually boost the cost of living adjustment each and every year by a little bit over long periods of time. It would actually adjust it much, much higher than the regular form that they’re using as of right now to adjust for the annual cost of living adjustments.

So that is another really good thing in there as well. However, one of the major downfalls behind the Social Security $2,100. And again, I just want to throw this out there is the provisions within this bill are only good for five years. Yeah. So there’d be like a sunset period after five years where these provisions would just phase out.

Well, that’s not very good. Even though they’d be going into effect and they’d be there for five years. That would be pretty nice. But at the same time, after that five-year period, they all kind of just fall away. Well, here’s what’s kind of the strategy behind this is they want to implement the Social Security 2100 in the event that Congress will come forward within this five year period and actually extend these out for a longer time frame or come in and reform the Social Security program, to actually reform it and actually make sure that it is solvent for many more years to come and that these benefits are actually lifted for these millions of beneficiaries.

So essentially what they would do is basically come in and implement the Social Security 2100 for five years until these benefits kind of start phasing out at that time frame. And then it would give Congress a little bit more of a runway to kind of get things done here over the short term. Five years is basically what it would give them, even though Congress technically has pretty much all the time that they want if they really wanted to. But essentially, it would give them a little bit more time where all these benefits would be impacted in a positive way for Congress to actually get something done more substantial for a permanent basis.

Now here’s another thing that’s kind of cool about the SSI Restoration Act, the one that we talked about just a minute ago, that would actually be permanent benefit raises and actually permanently adjusting the SSI program, the Supplemental Security Program. So that would actually be a really good thing right there is those would be actual permanent benefit raises and things like that. So a lot of really good stuff in that one as well. But anyway, it has been a long time coming here. But between these couple of different provisions and pieces of legislation, we may be looking at some pretty substantial raises to monthly beneficiaries ongoing for a long time here.

And the raise would be pretty substantial for a lot of people. So it’s pretty encouraging here. So, of course, just like so many other things out there right now, all we can really do is continue to wait and watch Congress to see what they do going forward. And if when they actually bring these pieces of legislation to the floor and they start working on them to ultimately raise the benefits and better adjust for the living situations for millions of people out there relying on these benefits. So again just like everything, I will continue to watch it very, very closely as I do get more information.

Of course, I’ll be right back here for you with those details and I’ll break it all down and let you know what is going on. But it’s encouraging that they are finally discussing bringing this to the floor and opening these things up for debate and hopefully getting these things through to actually raise the quality of life for millions of people who rely on these benefits for the vast majority of their monthly income. A lot of good stuff out there floating around right there but we just need Congress to actually do something and actually take action on all of these pieces of legislation that are floating around out there. Either way, just like always, I’ll continue watching it as I do get more information. I’ll bring it to you in these short topics and break it all down to help you out in any way that I possibly can.

Enjoy your day. Thank you so much for watching and I will catch you in later on the next topic.

I’ll see you for now.

 

 

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