A new plan would increase Social Security payouts by almost $2,000 in 2024, helping retirees and disabled individuals. Social Security has been a lifeline for years, but inflation requires a large boost.
In addition to addressing growing living expenditures, this plan affects survivor benefits by raising the lump sum payment for funeral costs from $255 to $2,900.
Why Social Security Increase Matters
Social Security benefits serve as a lifeline for millions of Americans, providing them with the monthly funds necessary to cover basic expenses such as lodging, healthcare, and groceries. However, inflation has resulted in a significant increase in the cost of living, rendering the previous benefits insufficient.
In order to help retirees and beneficiaries manage their increasing expenses in the current economic climate, a substantial adjustment was necessary.
This law specifically targets the Social Security Death Benefit, a lump sum payment that has stayed at $255 since 1954, in addition to the increases in monthly payments.
With funeral fees averaging more than $6,000, the antiquated lump amount has long proven insufficient to meet charges. To better reflect inflationary trends and bring the sum in line with the actual cost of end-of-life services, the new draft suggests raising it to $2,900 in 2025.
Key Features of the New Bill
The following changes to Social Security benefits are included in the proposed bill:
- Increase in Monthly Payment: Depending on their eligibility, retirees and recipients of disability benefits may receive an increase of more than $2,000 a year in their monthly payments. This raise aims to give them more financial security and keep up with inflation.
- Lump Sum Death Benefit: To bring the payment in line with current funeral expenses, the sum death benefit would be raised from $255 to $2,900. This would provide bereaved families with much-needed financial support during a trying period.
- Survivor Benefits: The measure also covers survivor benefits to guarantee that spouses, children, and dependents receive larger payouts after losing a loved one.
Eligibility for the $2,000+ Increase
To be eligible for the higher Social Security benefits, recipients must fulfill regular qualifying requirements:
- Retirement Age: To start collecting SSA retirement payments, a recipient must be at least 62 years old. If a person waits until age 70 to retire, they will receive the maximum payout of benefits, which begins at age 67.
- Work Credits: To be eligible for benefits, a beneficiary must have held Social Security-covered employment for at least ten years, totaling forty work credits. Contributions to payroll taxes are used to obtain work credits.
- Disability and Survivor Benefits: Under the new bill, people who are eligible for disability or survivor benefits may also enjoy an increase in their payments if they satisfy the SSA’s particular qualifying conditions.
Rising Costs and the Need for Change
Numerous causes contribute to the rise in Social Security payouts, including:
- Inflation: The rising cost of life impacts basic necessities, including food, shelter, and healthcare. The new measure aims to better represent the realities of inflation in Social Security payouts.
- Funeral Costs: According to the NFDA, full-service funerals now cost an average of $6,280. This is due to a sharp increase in funeral costs over time. Families will find it easier to handle these heavy expenses with the higher death benefit.
How the $2,900 Death Benefit Works
Families who lose a loved one can receive financial support through the Social Security Survivor Benefits. For every beneficiary who passes away, a lump sum death payment equal to $255 is made to the person’s surviving spouse or children.
Under the proposed measure, this payment would grow tenfold to $2,900, intended to assist families in more appropriately covering the costs of funerals and burials.
Survivors must notify the Social Security Administration (SSA) two years after the beneficiary’s death to be eligible for this benefit.Normally, the money goes to the spouse who is still alive. If there is no spouse, it will go to kids or family.
Impact on Beneficiaries
The increased lump sum death benefit and monthly benefits could give millions of Social Security recipients a much-needed financial boost.
The bill’s modifications are crucial to assisting the elderly and those with disabilities in maintaining their quality of life since inflation continues to impact daily spending.
If the law is passed, recipients will be able to receive improved support and protection against growing costs starting in 2025.
| Current Benefit | Proposed Benefit (2025) |
|---|---|
| Monthly Social Security Payment | Increase of over $2,000 annually |
| Lump Sum Death Payment | $255 |
| Proposed Lump Sum Death Payment | $2,900 |
| Full Retirement Age | 67 years |
| Maximum Payment (Delayed Retirement) | Up to $4,873 per month |
The new plan to make society more stable is a big step in helping people save money for when they retire, get sick or need time off to care for their family.
The law will give families $2,900 if a loved one dies, and will also give them almost $2,000 more each year to help with their expenses. This will especially help people who really need it.
