SSI, aka Supplemental Security Income, is a means-tested program that provides monthly cash benefits to individuals who are disabled or have a low income. It is administered by the Social Security Administration. The United States Social Security program has provided financial assistance to people with disabilities since the 1930s. This includes blind adults, disabled children, and other qualifying low-income people.
Applicants must meet income and asset requirements to receive an SSI benefit. In addition, a state can supplement a federal SSI payment. Depending on the state, a benefit may be paid as early as the month of application. The benefit is also tied to the Consumer Price Index.
What are Supplemental Security Income Benefits for 2023
The Social Security Administration recently announced that in 2023, its benefit will increase by 8.7%. While it might not sound like much, the boost will be the largest in over 40 years.
This increase, which will take effect in January of this year, will boost the average retired person’s monthly benefit by $144. However, the actual cost-of-living increase is less impressive.
The increase will be based on the Bureau of Labor Statistics Consumer Price Index for Urban Wage Earners and Clerical Workers. This index is based on changes in the third quarter of a year to the third quarter of the following year.
The Social Security Administration considers the CPI-UW when calculating the Social Security taxable earnings base. In 2023, the maximum amount of earnings subject to Social Security taxes will increase from $102,000 to $160,200. This increase is a boon for retirees who have been paying into the system for decades.
The Social Security Administration also announced a new maximum federal SSI (Supplemental Security Income) payment amount. This new amount will be $421 for single people and $1,375 for couples.