Social security income recipients fall 20,000 since January

For decades, social security has been part of the American dream. You work, pay taxes, and into social security, and you retire. But that dream has become cloudy in the last ten years, as the program faces solvency issues, and have even faced cuts as a means of funding rampant government overspending.

The Biden economy has only made things worse, with prices and inflation soaring, and it has put people in a precarious spot. Do you retire, and struggle off social security? Do you stay working to afford the high cost of living? It is two questions millions of Americans have been asking themselves in recent months, and years.

The choice appears to fall with the latter question. As of January 2024, the number of recipients of Supplemental Security Income have dropped by 20,000, and since last October, they have plummeted by over 60,000.

Economist Dr. Vance Ginn says there are two parts to the drop in numbers though.

"It indicated more people are going to work, or there were also many changes made by the Social Security Administration...which changed the eligibility criteria," he says.

They instituted changes in October, which pushed people especially on food-related programs out.

While people returning to work seems like a good thing logically, it is a double-edged sword in the viability of the program.

"If fewer people are receiving funds, they are working and paying into social security...that would help the program," he says. "But if this is because of eligibility criteria changes, that may not have an influence on the long-term solvency of the program."

There is also benefit in the system of retiring later. This year, those who retired at 70 saw a monthly benefit of about $4,800. Compare that to those who retired at 62, who saw around $2,700 monthly.

Still, about 7.4 million Americans rely on what has become a broken system, that is also trying to survive amid high inflation and overspending. But even with Trump coming back, if you thought things would get better immediately, think again.

"Even though it has moderated some...inflation is still close to three percent...and I think we will see more inflationary pressures," he says.

Ginn adds that if Trump and rein in overspending when he gets into office, it might help the program survive long-term.