People with disabilities and adults in retirement often get payments from Social Security every month, which is very important financial help.
When a Social Security recipient dies, their family members can get survivor benefits, which include a death payment in one lump sum.
The death benefit has always been $255, the same amount every year since 1954. This amount, which was meant to help families after a death, has not been changed to represent how the economy is now.
Proposed increase of $2,900 for Social Security death benefits
Even though big inflation has made things like food, housing, and health care more expensive for Americans, the lump sum payout has stayed the same.
Because of this financial stress, funeral costs have gone up, and many families can not pay their bills after a death with the money they have coming in. This difference is being emphasised by lawmakers who back the Social Security Survivor Benefits Equity Act.
- Rising Costs: Inflation has driven up prices across the board, impacting everyday living expenses.
- Funeral Expenses: The cost of funerals has surged, adding financial burdens to grieving families.
- Outdated Payment: The $255 payment, set in 1954, no longer meets today’s economic realities.
Legislative Efforts To Adjust Death Benefits
This week, Peter Welch, a Democrat from Vermont, made a unique idea. The suggested bill would raise the death benefit to $2,900, which would make it more in line with the rate of inflation at the moment.
Support from Prominent Senators
Independent Senator Bernie Sanders of Vermont and Democratic Senator Elizabeth Warren of Massachusetts have teamed up to co-lead this vital bill.
Concerns about rising funeral costs
Funeral costs should be the last thing on the minds of families who have just lost a loved one,” Senator Welch said, echoing the sentiments of many others.
He said, “Because benefits are not keeping up with inflation, the cost of burying a loved one has become a pressing issue for many families in grief.”
It was possible to have a full funeral and cremation service for only $700 when the first $255 lump sum death payment ran. National Funeral Directors Association says that the average cost has gone up to $6,280 as of today.
The Increasing Cost of Funerals
If you’re thinking about having a coffin funeral, expect the costs to skyrocket, with an average of $8,300.
The Need for Change
Thompson says it is very possible that the bill will become law. It is been 70 years since the death payment was changed to reflect inflation. It has been the same since the 1950s.
Thompson told me that “people often laugh at the amount that the Social Security death benefit gives.” “It needs to go up right away to keep up with inflation.”
This change would help families a lot during these hard times, since they often have trouble getting the money they need to bury their loved ones.
The Uncertain Future of Social Security’s Death Benefit Bill
What happens if the bill passes?
If this new measure passes, the higher amount of $2,900 will start to apply in 2025, taking into account the consumer price index for pay earners and office workers in cities.
Eligibility for Death Benefits
Currently, survivors can qualify for the death payment under the following conditions:
- You must apply within two years of your spouse’s or parent’s passing.
- The benefit is typically given to the surviving spouse.
- If there is no surviving spouse, the benefit might be transferred to the deceased’s children.
When a loved one dies, it is usually the person who is still alive’s job to tell the Social Security Administration. This step is very important to stop people from getting fake Social Security payouts.
Also see:-SSI will increase by $288 owing to the cost of living adjustment, COLA
