Social Security is a dynamic program, and recent changes have highlighted this reality. In 2024, approximately 30,000 children of deceased workers lost eligibility for benefits, according to data from the Social Security Administration (SSA).
While Social Security remains a vital source of financial support for vulnerable populations, including seniors, people with disabilities, and survivors of deceased workers, not all benefits are permanent.
Minnesota Governor Tim Walz, who is also Kamala Harris’ running mate, shared his personal connection to these benefits, noting that his family relied on Social Security payments after his father’s death. Despite the importance of the program, recent data reveals a decline in the number of children receiving survivor benefits.
In January, around 2.04 million children were receiving these benefits, but by July, that number had decreased to approximately 2.01 million, resulting in 30,000 children being removed from the program.
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, commented on the situation, emphasizing the confusion surrounding these recent changes. “This has been a topic of confusion over the past few months, and for good reason.
We’ve seen a decline in many subgroups of Social Security beneficiaries, including children of deceased workers, but it’s unclear why the decline has occurred, and the administration has not responded to questions about it.”
Why Are Social Security Benefits Ending for Thousands of Americans?
Several factors could explain the reduction in the number of children receiving survivor benefits between January and July. One possible reason is that the SSA has been conducting eligibility reviews, leading to the termination of benefits for those who no longer meet the program’s criteria.
Kevin Thompson, a financial expert and founder of 9i Capital Group, explained that changes in income, age, or a child’s status could result in a loss of benefits. “There are income thresholds that they may need to maintain, and if the income threshold goes over those limits, the earnings test can kick in and benefits can be reduced or eliminated.”
Thompson also mentioned that if a surviving parent takes an additional job to support their family, it could impact their child’s eligibility for survivor benefits. He further suggested that declining birth rates might be contributing to the decrease in beneficiaries.
“It’s a delicate balance for something that is actually owed to you, especially if you have a child under the age of 18. While many children are likely aging out of the program, and with lower birth rates among Gen Y and Gen Z, we may continue to see this trend.”
Another consideration is the SSA’s recent decision to remove outdated job categories from its list earlier this year. However, as Beene pointed out, the effect of this action on the overall numbers is still unclear. He also noted that the reduction in benefits has not been consistent across all states.
“We also know that not every state is seeing these reductions in the same numbers. Some states have seen no change in beneficiaries, while others have seen significant cuts. This may indicate an issue at the state level with how data is being handled, and how corrections are being made by Social Security on the back end.”
For those who remain eligible, the average monthly survivor benefit is over $1,000. These benefits typically continue until the child turns 18 or marries.
In some cases, stepchildren, grandchildren, and adopted children may also qualify for these benefits, ensuring that financial support is available to a broader range of survivors who meet the necessary criteria.
Conclusion
The loss of Social Security benefits for thousands of Americans in 2024 highlights the ever-changing nature of the program. While these benefits provide essential support, eligibility is not guaranteed indefinitely. It’s crucial for beneficiaries to stay informed and understand the factors that could impact their continued eligibility for these critical payments.
Q1. Why are some children losing their Social Security survivor benefits?
A. Several factors, including eligibility reviews, changes in income, age, and the SSA’s recent decisions, may contribute to the loss of benefits for some children.
Q2. What is the average monthly survivor benefit for eligible children?
A. The average monthly survivor benefit is over $1,000 for those who remain eligible.
Q3. How long do survivor benefits typically last?
A. Survivor benefits usually continue until the child turns 18 or marries, though other factors may influence the duration.
Q4. Could changes in a surviving parent’s income affect a child’s benefits?
A. Yes, if a surviving parent takes on additional work or exceeds income thresholds, it could impact the child’s eligibility for benefits.
Q5. Are all states equally affected by the reduction in benefits?
A. No, the reduction in benefits has not been consistent across all states, indicating potential state-level issues with data management and corrections.
