The month of July is ending (I know, the year is slipping through our fingers like water, but the passage of time is inevitable… ok, now, let’s concentrate) and the sending of a new payment of the Supplementary Security Income is getting ready.
Also known as SSI, it is a federal program working under the umbrella of the Social Security system in the United States that provides financial assistance to people with disabilities, older adults and people with low incomes. This program is designed to help cover basic needs such as food, clothing and housing.
To be considered eligible by the Social Security Administration (SSA), applicants must meet certain criteria. Among them, they must be partially blind or have a physical or mental condition that seriously limits their daily activities for a period of 12 months or more, or that can be expected to result in death. In addition, they must prove to have limited financial resources.
Maximum SSI benefits in 2024
The maximum amount received varies depending on how the application is submitted. For example:
- Individual applicants can receive up to $943 per month.
- Couples filing jointly can receive up to $1,415 per month.
Essential individuals providing care to SSI beneficiaries can receive up to $472 per month.
These are the values that are paid until September 30, 2024, and in September the new Social Security cost-of-living increase (COLA) will be revealed, a percentage that aims to help beneficiaries cope with inflation.
This increase is based on the consumer price index for urban wage earners and clerical workers (CPI-W) and is applied to Social Security (Retirement and Social Security Disability Insurance) and Supplemental Security Income (SSI) benefits for the following year.
The Difference Between SSI and Social Security
SSI payments are separate from regular Social Security benefits. This means that people who receive Social Security payments may not qualify for SSI payments and vice versa.
Millions of eligible beneficiaries will receive their Supplemental Security Income payment, worth up to $943 in less than two weeks. The first payments will be distributed on August 1 to those with a debilitating disability that affects their income, according to the Social Security Administration.
One last Social Security payment will be sent before the end of July
Those who receive Social Security retirement and Disability (SSDI) benefits are grouped into three distinct monthly payments. The first one is done on the second Wednesday of every month, and is for those who have birthdays between the 1st and the 10th of any month: its date was July 10th.
The second payment is made on the third Wednesday and is when the money is sent to those who meet between the 11th and the 20th of any month: their set date was July 17th.
The third group of retirees and SSDI beneficiaries receive their paper checks and deposits on the fourth Wednesday of July, that is, on July 24th. This group is made up of those who have birthdays between the 21st and the 31st of any month.
How Is Social Security Funded in the United States?
In the United States, the Social Security system is funded primarily through payroll taxes, under the Federal Insurance Contributions Act (FICA) and the Self-Employed Contributions Act (SECA). Employees and employers contribute 6.2% each on wages, up to an adjusted annual income limit, which by 2024 is $160,200.
Self-employed workers pay 12.4%. These taxes fund retirement, disability, and survivor benefits. Funds not immediately used for benefit payments are deposited into trust funds, which are invested in government securities, generating additional interest.