Social Security Cuts: 3 Key Assistance Programs for Americans Planning To Retire in 2024
Written by
John Csiszar
Edited by
Gary Dudak
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For nearly 100 years, Social Security has been the backbone of the American retirement system. The Social Security Administration (SSA) has regularly updated workers on how much they should expect to receive when retiring at different ages based on their work history. Now, however, those projections are in danger of being reduced.
According to the latest Social Security Trustees Report, there may be cuts of 23% coming to retirement benefits as early as 2034. While that may seem like it’s still quite a ways down the road for those planning to retire in 2024, the truth is that a 23% cut to benefits coming 10 years into your retirement could be devastating, particularly if you’re depending on that income to finance your golden years.
Although legislative action could still prevent this from happening, it’s best to prepare yourself now for any eventualities. Here’s a list of assistance programs that can help Americans planning to retire in 2024.
Cost-of-Living Adjustments
While not a “program” per se, the annual cost-of-living adjustment (COLA) provided by the SSA can be a lifesaver in and of itself. Every year, Social Security benefits increase by an amount intended to keep them in line with inflation.
While this won’t overcome a future 23% cut in benefits if that were to happen, it will help keep your payout in line with rising costs. Without the annual COLA, your benefits would effectively fall in value by a few percentage points every year. After 11 years, if retirement benefits were cut 23%, you might be closer to 50% behind your actual cost of living if there was no COLA — so it’s an essential protection.
Medicare Savings Programs
Medicare is another key benefit that the U.S. government provides to seniors. Much like Social Security, it is financed in large part by payroll taxes. Medicare kicks in at age 65 with Part A, hospital insurance, free of charge for many seniors, although some will have to pay a small premium. Part B, medical insurance, requires premiums of $164.90 each month, although those with higher incomes may have to pay more. These programs also come with deductibles of $1,600 for Part A and $226 for Part B as of 2023.
To help pay for any premiums owed, deductibles and/or copays, you may be able to get help from your state through a Medicare Savings Program.
There are four Medicare Savings Programs available, each of which provides slightly different coverage: the Qualified Medicare Beneficiary (QMB) Program, the Specified Low-Income Medicare Beneficiary (SLMB) Program, the Qualifying Individual (QI) Program and the Qualified Disabled & Working Individual (QDWI) Program.
Just like with other benefits programs, your income and resources will determine if you can qualify. For the 2023 Qualified Medicare Beneficiary (QMB) Program, for example, the federal government sets resource and monthly income limits of $9,090 and $1,235 for single people, respectively. For married couples, those limits are $13,630 and $1,663. Ultimately, however, you’ll have to contact your state to qualify.
Food Benefits
The Supplemental Nutrition Assistance Program (SNAP) is a way that qualifying Americans, including seniors, can get assistance paying for their monthly groceries. However, many overlook and/or underutilize the program, according to a 2015 study showing that less than half of eligible seniors collect their SNAP benefits. As of 2023, qualifying couples could receive up to $535 in monthly benefits, while singles could get up to $291.
SNAP is a federal program, with income qualification levels determined for all states (except Hawaii and Alaska, which have higher limits). Through Sept. 30, 2024, the gross monthly income limit for a household of two is $2,137, with a net income limit of $1,644. Those numbers fall to $1,580 and $1,215, respectively, for one-person households.
But SNAP is actually administered by individual states. This means you’ll have to file an application with your state in order to determine your eligibility, and extra requirements may apply. For example, in California, in addition to falling below the income limits, you’ll have to have a current bank balance below $2,001, or $3,001 if someone in your household is disabled or over age 60.
There are many other options for food assistance for seniors as well. The Commodity Supplemental Food Program, for example, provides seniors as young as age 60 with nutritional food. To qualify, you’ll need an income under 130% of the federal poverty line, meaning the limits are the same as with SNAP. Other programs include the Emergency Food Assistance Program and Tribal Nutrition Assistance Program. Individual states may offer additional assistance, such as the California Food Bank Capacity Program.
The Bottom Line
Whether or not Social Security cuts actually materialize, there are a number of programs that can help seniors with lower income and/or resources, especially with healthcare and food security. Check with both your state government and the federal government to see what programs are available and what the current qualification standards are, as they tend to change annually.
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