What you need to know
- The maximum monthly SSI benefit is $841 in 2022. The average benefit is less than $600, Warren said.
- The most a recipient can earn in income before losing benefits is $65 per month.
- The SSI Restoration Act would include an increase in the payout percentage.
sen. Elizabeth Warren, D-Mass., said on Thursday that the supplementary income component of Social Security needs to be reformed and calls for the approval of the SSI Restoration Act, saying outdated rules have “trapped” four out of ten recipients into poverty.
During a hearing held by the Senate special committee on aging that focused on financial literacy, Warren said that while financial literacy is important for those “trying to make important decisions, such as planning for retirement,” for families low-income “navigating a thin social network”. safety net that gives them too little help, all the education and guidance in the world cannot magically add up 2 + 2 to 10.”
SSI “provides a critical lifeline for 8 million low-income elderly and disabled Americans, including more than 1 million disabled children and the families who care for them,” Warren said. “But right now our rules are outdated, they’re punitive, and they’re squeezing way too many struggling families out of this program and trapping about four in ten recipients in poverty.”
“The maximum monthly SSI benefit — maximum — is $841 in 2022,” Warren said. “The average benefit is less than $600.”
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Warren asked Cindy Hounsell, president and founder of the Women’s Institute for a Secure Retirement, who testified at the hearingIf $600 a month is “enough to live in financial security and save for retirement?”
Hounsell replied, “Thank you, Senator, for addressing that matter. No, it is in no way sufficient. Obviously, it’s only half the poverty level for the elderly.”