End of an Era: Retirees Who Will Stop Receiving SSI Payments from Social Security
According to Lagradaonline, Recently, the Social Security Administration (SSA) announced that millions of Supplemental Security Income (SSI) recipients will no longer receive their regular benefits. In 2023, over 100,000 individuals nationwide were removed from the SSI rolls. As of May 2023, there were 7,380,737 people receiving SSI payments, but by May 2024, this number dropped to 7,261,342, reflecting a decrease of 119,395 beneficiaries.
If you currently qualify for SSI benefits or are considering applying, it’s essential to understand the factors contributing to this decrease in recipients.
Profile of SSI Beneficiaries
SSI benefits are primarily available to blind adults and children with little or no income, as well as individuals with disabilities. Approximately 6.1 million of the 7.2 million SSI claimants fall into the blind or disabled category, while the remaining 1.1 million are aged 65 and over. Notably, there was a decrease of 140,034 in the blind or disabled claimants, dropping from 6,281,068 in May 2023 to 6,141,034 in May 2024. However, the number of beneficiaries aged 65 and older increased by 20,639, from 1,099,669 to 1,120,308.
The reasons behind the decline in blind or disabled beneficiaries are not immediately clear. According to an email inquiry sent to the SSA by Newsweek, over 10,000 individuals in various states were removed from SSI benefits. California, which had the highest number of applications, saw a decrease of 16,573 SSI applications between May 2023 and May 2024. Furthermore, more than 17,000 individuals who were receiving disability benefits became ineligible, primarily in the blind or disabled category, resulting in a drop from 708,695 to 690,351 beneficiaries.
Regional Variations in SSI Claims
Texas also experienced a significant decline, with 14,587 fewer SSI beneficiaries, dropping from 591,710 in May 2023 to 577,123 in May 2024. Other densely populated states, like New York, reported a decrease in SSI recipients, falling from 568,777 to 559,222. Meanwhile, some states, such as North Dakota, saw minimal changes, with only 17 fewer recipients, dropping from 7,923 to 7,906. In Rhode Island, the number of beneficiaries varied slightly by about 300, from 30,317 in 2023 to 30,015 in May.
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Changes to Disability Benefits Assessment
The SSA recently announced changes to the evaluation process for Social Security Disability Insurance (SSDI) and SSI applications. These updates are designed to streamline the disability determination process. Effective June 22, 2024, the new rules aim to improve the claims process and reduce wait times for decisions.
Under the revised regulations, the SSA will now only review the applicant’s work history for the past five years, instead of the previous 15 years. This change addresses the difficulties individuals faced in providing comprehensive employment histories, which often led to inaccuracies or incomplete reports. Additionally, jobs that last less than 30 calendar days will no longer be considered in the evaluation process.
As the SSA stated, “The new regulation makes it easier for people to apply for benefits since they may focus on their most recent relevant job activity while still providing enough information to make accurate evaluations.”
Conclusion
The decrease in SSI recipients raises important questions about eligibility and the overall support available to individuals in need. Understanding the reasons behind these changes and the new application processes can help current and prospective beneficiaries navigate the complexities of the SSI program effectively.