Social Security Payment Increase – New Bill Raises Amount Over $2,000

For many seniors and individuals with disabilities, Social Security is a lifeline, providing crucial financial support. Additionally, survivors of Social Security beneficiaries receive death benefits, including a lump sum payment. However, this payment has remained at $255 since 1954, leaving it woefully outdated as inflation and funeral costs have skyrocketed.

Now, a proposed bill could significantly increase this benefit, bringing much-needed relief to grieving families.

Proposal

Lawmakers are pushing to increase the Social Security death benefit to $2,900, reflecting inflation and today’s economic challenges. This proposal comes as part of the Social Security Survivor Benefits Equity Act, led by Vermont Senator Peter Welch. Backed by prominent figures like Senators Bernie Sanders and Elizabeth Warren, the bill aims to help families facing rising costs in funeral expenses.

Inflation

Inflation has driven the cost of living through the roof. Everything from housing to healthcare has become more expensive, leaving many Americans struggling. Yet, the $255 death benefit has remained stagnant, offering little support to families during their most vulnerable moments.

Take funeral costs, for example. In the 1950s, a full funeral and cremation service cost around $700. Today, that price tag is closer to $6,280, according to the National Funeral Directors Association. If you’re opting for a casket and a full funeral service, the cost can soar to around $8,300.

Clearly, a one-time payment of $255 is no longer sufficient to cover even a fraction of these costs.

Funeral Costs

Funerals are more expensive than ever. The average cost for a basic service has surged past $6,000, and opting for a casket can push the bill over $8,000. These high expenses add emotional and financial stress to families already grieving the loss of a loved one.

That’s why the proposed $2,900 lump sum death benefit is seen as essential by many advocates. Senator Welch highlighted the critical nature of this bill, noting that “funeral costs should be the last concern for grieving families.” He explained that with benefits failing to keep pace with inflation, many families struggle to afford a proper burial.

Legislative Efforts

The Social Security Survivor Benefits Equity Act has strong support in Congress. If passed, the new benefit amount would take effect in 2025. Adjustments would be tied to the Consumer Price Index, helping the benefit keep up with inflation.

This change is long overdue. It has been 70 years since the death benefit was last updated. Over time, people have become accustomed to seeing the $255 payment as insufficient, sometimes even mocking its low value. The proposed adjustment would finally modernize the benefit, offering meaningful financial assistance to families during times of loss.

Eligibility

Currently, survivors must meet certain criteria to qualify for the death benefit:

• Survivors must apply within two years of the death.
• The benefit is generally awarded to the surviving spouse.
• If there is no surviving spouse, the deceased person’s children may receive the benefit.

In addition to applying, survivors are also responsible for notifying the Social Security Administration of the death. This step ensures that no further Social Security payments are mistakenly issued.

What’s Next?

If the proposed bill passes, the new $2,900 benefit would provide significant relief for grieving families. Given that the benefit has not been updated since the 1950s, this change is critical in addressing the financial burden families face. With bipartisan support, many believe there is a strong chance this bill will become law.

Families deserve better than an outdated, meager payment to cover death-related expenses. This proposed increase would help restore dignity and financial stability for those coping with loss.

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