Social Security is a lifeline for millions of Americans, providing essential financial support to seniors, disabled individuals, and survivors of deceased beneficiaries.
One component of this support system, the lump sum death benefit, has remained stagnant for nearly 70 years.
Originally set at $255 in 1954, this payment has failed to keep up with inflation and rising funeral costs, leaving grieving families with insufficient financial help during challenging times.
Proposed Increase to $2,900 for Social Security Death Benefit
A new bill introduced by Senator Peter Welch (D-VT) proposes raising the death benefit to $2,900, bringing much-needed financial relief to families who bear the rising cost of funerals.
This increase would adjust the lump sum payment to reflect inflation, aiming to cover more of the expenses associated with a loved one’s passing. The bill, known as the Social Security Survivor Benefits Equity Act, is gaining support in Congress.
The Need for Change
Rising Costs
Inflation has driven up the cost of living, impacting nearly every aspect of daily life, including basic necessities like groceries, healthcare, and housing. This economic strain also extends to the cost of funerals.
Funeral Expenses
The average cost of a funeral has skyrocketed in recent decades. The National Funeral Directors Association reports that the average cost of a full funeral with cremation is around $6,280, while a traditional funeral with a casket averages $8,300. The outdated $255 death benefit is clearly inadequate to meet these rising expenses.
Outdated Payment
When the original $255 payment was set in 1954, a funeral could be arranged for as little as $700. Today’s costs have far outpaced that figure, making an increase in the death benefit long overdue.
Legislative Efforts to Adjust Death Benefits
Senator Welch’s bill is co-led by prominent lawmakers, including Independent Senator Bernie Sanders (I-VT) and Democratic Senator Elizabeth Warren (D-MA).
Together, they are pushing for this increase to ensure that Social Security survivor benefits are adjusted for inflation, easing the financial burden on mourning families.
Senator Welch’s Statement
“Funeral costs should be the last concern for grieving families who have just lost a loved one,” said Senator Welch. He stressed that the current benefit does not reflect the financial realities of today’s economy and must be updated to keep up with inflation.
The Rising Cost of Funerals
Funeral costs have increased dramatically over the years, with many families now struggling to afford even basic services.
The $255 death benefit can barely cover a fraction of today’s funeral costs, which is why lawmakers argue that the payment should be increased to $2,900.
What Happens if the Bill Passes?
If the Social Security Survivor Benefits Equity Act is passed, the increased benefit would take effect in 2025. This updated payment would be tied to the consumer price index for urban wage earners and clerical workers (CPI-W), ensuring that it adjusts for inflation in the future.
Eligibility for the Death Benefit
Eligibility for the death benefit remains largely unchanged under the proposed legislation:
- Survivors must apply for the death benefit within two years of the spouse’s or parent’s death.
- The benefit is typically awarded to a surviving spouse.
- If there is no surviving spouse, the benefit can be awarded to the deceased person’s children.
It is also crucial for families to notify the Social Security Administration (SSA) after a loved one passes away to prevent any unwarranted Social Security payments from being issued.
The Future of the Social Security Death Benefit
The potential increase in the death benefit to $2,900 represents a significant step forward in addressing the outdated structure of the current lump sum payment. Lawmakers and advocates alike are calling for this adjustment to help families during some of their most challenging times.
With strong bipartisan support, many experts believe the bill has a good chance of passing. If approved, it would finally bring the lump sum death payment in line with today’s economic realities, providing much-needed financial relief for families.
The proposal to raise the Social Security death benefit from $255 to $2,900 is a long-overdue adjustment that reflects the rising costs of funerals and the impact of inflation.
As lawmakers push for change, the bill’s passage would ensure that survivor benefits better meet the financial needs of grieving families.
For those concerned about funeral expenses, this proposed increase would bring much-needed financial relief, offering families the opportunity to focus on healing rather than financial burdens.
FAQs
What is the current Social Security death benefit?
The current lump sum death benefit is $255, a figure that has remained unchanged since 1954.
What is the proposed increase for the Social Security death benefit?
The proposed increase would raise the death benefit to $2,900, reflecting inflation and the rising costs of funerals.
When would the increased death benefit take effect?
If passed, the increase to $2,900 would take effect in 2025 and would adjust based on inflation.
Who is eligible for the Social Security death benefit?
Typically, the surviving spouse is eligible for the death benefit, or, if there is no spouse, it may be awarded to the deceased person’s children.
How much does the average funeral cost today?
According to the National Funeral Directors Association, the average cost of a funeral with cremation is $6,280, while a traditional funeral with a casket averages $8,300.
