As 2024 draws to a close, many Americans are facing the reality of losing their Social Security benefits. The Social Security Administration (SSA), which oversees both Supplemental Security Income (SSI) and Old-Age, Survivors, and Disability Insurance (OASDI) programs, has published a list of individuals who will no longer qualify for monthly payments.
Social Security: A Lifeline for Many
Social Security benefits provide essential financial assistance to seniors, people with disabilities, and surviving family members of deceased workers who meet the SSA’s eligibility criteria. However, these benefits are not permanent and can be subject to change.
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Recent reports show that approximately 30,000 children of deceased workers have lost their eligibility for Social Security benefits this year. This shift highlights the evolving nature of the program, which adjusts according to various eligibility factors.
Decline in Survivor Benefits for Children
There has been a noticeable decrease in the number of children receiving Social Security survivor benefits. In January 2024, about 2.04 million children were receiving these payments, but by July, the number had fallen to 2.01 million, resulting in 30,000 children losing access to benefits.
Minnesota Governor Tim Walz, a running mate of Vice President Kamala Harris, shared a personal account underscoring the importance of these benefits. He explained how his own family relied on survivor benefits after his father’s passing. Despite the program’s significance, the trend of decreasing benefits is raising concerns among both beneficiaries and financial experts.
Reasons Behind the Loss of Social Security Benefits
Regular Eligibility Reviews
One major reason for the reduction in benefits is the SSA’s periodic eligibility reviews. Children may lose survivor benefits if they no longer meet the criteria due to factors like age, changes in family income, or alterations in their personal circumstances.
Impact of Income Limits and Earnings Tests
Financial expert Kevin Thompson, founder of 9i Capital Group, points out that income limits play a critical role. If a surviving parent takes on a new job or if a child earns more than the allowed amount, their benefits may be reduced or discontinued.
Aging Out and Declining Birth Rates
As children reach the age of 18 or marry, they “age out” of the program. Additionally, the declining birth rate among younger generations, such as Gen Y and Gen Z, has led to fewer children qualifying for these benefits, contributing to the overall decrease in the number of recipients.
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State-by-State Variations and Average Benefit Amounts
Not all states have experienced the same decline in Social Security benefits. For those who remain eligible, the average monthly benefit for survivors is close to $1,000. In some instances, stepchildren, grandchildren, and adopted children can also qualify for these benefits, expanding the pool of potential recipients.
Uncertainty Surrounding SSA Decisions
Recent decisions by the SSA, such as eliminating outdated job classifications, may also impact these trends. However, it is unclear how these changes will affect the program in the long term. Financial expert Alex Beene has raised concerns about the uncertainty surrounding these reductions, which has increased public scrutiny.
Key Factors Contributing to Loss of Social Security Benefits
| Factor | Impact |
|---|---|
| Age Limit | Benefits typically end when a child turns 18 or gets married. |
| Income Thresholds | Earning beyond set income limits can lead to reduced or lost benefits. |
| Eligibility Reviews | Regular SSA reviews may result in disqualification. |
| Declining Birth Rates | Fewer eligible children due to generational demographic shifts. |
| Parental Employment | Increased income from surviving parents can affect eligibility. |
FAQs
Why are children losing Social Security survivor benefits?
Children may lose benefits due to age restrictions, changes in income, eligibility reviews, or marriage.
What is the average monthly Social Security survivor benefit?
The average monthly survivor benefit for those who qualify is around $1,000.
How long do Social Security survivor benefits last?
These benefits typically continue until the child turns 18, gets married, or no longer meets eligibility criteria.