As inflation sent grocery prices soaring, the Senior Citizens League, an organization that advocates for the rights of older Americans, said that a third of seniors “had to visit a food pantry or apply for SNAP benefits, or food stamps, to put dinner on the table” based on a survey they conducted. According to the US Department of Agriculture (USDA), 18 percent of SNAP beneficiaries are ‘elderly adults’, and 44 percent of ‘single-person SNAP households’ are represented by older beneficiaries.
With Social Security being the only form of income for forty percent of retirees, inflation can quickly cut into the purchasing power of seniors to levels that force them to fill gaps. Additionally, when one considers that more than a third of Social Security beneficiaries receive a check worth less than $1,500, the need to bolster one’s income can become essential to affording groceries, housing, and healthcare.
Earlier this month, the National Council on Aging reported that in 2022, only 44 percent of seniors eligible for SNAP benefits participated in the program. California, the country’s most populous state, saw only 19 percent of eligible seniors enrolled in SNAP. With inflation putting pressure on seniors’ finances, enrollment may have increased recently.
SNAP income requirements and Social Security benefits
The Social Security Adminstration publishes annual data on the distribution of the value of benefits across states. In most states in 2023, a household of one had to have an income under $1,215 to qualify for SNAP benefits. If we were to assume that beneficiaries who received less than this amount had no other form of income besides Social Security in 2023, eligibility would look something like this.
- Alabama: 23.3%
- Alaska: 43.8
- Arizona: 22.2
- Arkansas: 24.7
- California: 30.3
- Colorado: 24.6
- Connecticut: 18.3
- Delaware: 16.2
- District of Columbia: 33.9
- Florida: 24.9
- Georgia: 25
- Hawaii: 24.9
- Idaho: 23.4
- Illinois: 23.9
- Indiana: 18.9
- Iowa: 19.5
- Kansas: 18.8
- Kentucky: 26
- Louisiana: 32.2
- Maine: 27.2
- Maryland: 21
- Massachusetts: 24.6
- Michigan: 19.1
- Minnesota: 18.2
- Mississippi: 26.9
- Missouri: 23.3
- Montana: 25.4
- Nebraska: 20.1
- Nevada: 27
- New Hampshire: 16.7
- New Jersey: 19.1
- New Mexico: 28.5
- New York: 23.9
- North Carolina: 20.8
- North Dakota: 22.5
- Ohio: 25.7
- Oklahoma: 23.6
- Oregon: 22.7
- Pennsylvania: 19.4
- Rhode Island: 21.6
- South Carolina: 20.7
- South Dakota: 22.5
- Tennessee: 22.3
- Texas: 28.3
- Utah: 22.2
- Vermont: 19.9
- Virginia: 21.4
- Washington: 20.4
- West Virginia: 23
- Wisconsin: 18.2
- Wyoming: 20.7
In other words, the box above shows the percent of retired workers receiving Social Security benefits that would have qualified for SNAP, had there not been another source of income, either from their own savings or from another member of the household. This data shows that nationally more than one in five retired workers, representing around 9.7 million people would have been eligible for SNAP. This figure is most likely an overshoot because it assumes that all retirees live alone, and thus do not have additional income coming in from a spouse, partner, or family member. Nevertheless, the cut-off to receive benefits for a household of two is $1,644, meaning their Social Security checks or other income would need to be under this level to receive SNAP benefits. The US Census Bureau reported that in 2021, 63 percent of seniors living in poverty lived alone, highlighting the harsh reality that a single-income household faces when it comes to affordability.
In 2025, the income limit for a single household to receive SNAP benefits will be $1,255 or $1,632, depending on the state’s cut-off limit. For Alaska and Hawaii, the figures are a little higher: $2,038 and $1,443, respecitively. Contact your state’s SNAP adminstrator to see if you qualify.
As a new adminstration prepares to take power, Medicare and Social Security beneficiaries should be aware that there shouldn’t be any immediate changes to their benefits outside of those that are to be expected, like the annual Cost-of-living Adjustment (COLA - Social Security) and changes to premium prices and deductibles (Medicare).
Changes coming to Social Security
Thanks to the 2025 COLA, Social Security beneficiaries will see their checks rise by 2.5 percent starting in January. This adjustment is lower than those applied to benefits over the last two years—3.2 percent in 2024 and 8.7 percent in 2023—a sign that inflation is slowing. Nevertheless, the fact that a COLA has to be offered means that prices have risen over the last year, and some organizations, like the Senior Citizens League, do not see the COLA as sufficient.
In the coming weeks, Social Security beneficiaries will be sent a letter detailing the increase to their benefits that they will see reflected in the new year.
Changes coming to Medicare
As far as Medicare is concerned, the deductible for Part A will rise by $44 on average compared to 2024:
- Inpatient hospital deductible: $1,676
- Daily hospital coinsurance for 61st-90th day: $419
- Daily hospital coinsurance for lifetime reserve days: $838
- Skilled nursing facility daily coinsurance (days 21-100): $209.50
As far as Part B is concerned, those who receive Social Security and are enrolled in Medicare will see the premium deducted from their benefits rise by $10:30 to $185.00 starting in January. The deductible for Part B, which covers outpatient patient services, will rise by $17 to $257.
Your chance to make a change to your healthcare plan - Medicare Open Enrollment
For those who are interested in making their own changes to their healthcare plan, the Medicare Open Enrollment Period is underway through 7 December. If you would like to opt into an income-based prescription plan, otherwise known as a Medicare Part D plan, you have just a few weeks to select one. Part D plans make prescription drugs more affordable. Single tax filers with an income under $106,000 or who file jointly and earn less than $212,000 will not see any funds deducted from their Social Security check. According to the Centers for Medicare and Medicaid Services, only around eight percent of Part D plan holders pay anything for them based on the income thresholds.
One change that went into effect during the Biden administration was the capping of the price of insulin at $35 for a month's supply, for seniors enrolled in a Part D plan.
How much cash should you keep in your house? The recommended quantity according to an expert financial planner
A look at the risks and benefits of keeping cash at home... here is what financial planners recommend.
Though the FDIC eliminated much of the risk that a run private bank could leave customers without the funds they have deposited over the years, some financial experts argue that there are benefits to keeping some cash out of the banks. Critically, the FDIC only insures deposits up to $250,000 for certain account types. Some kid that their grandparents had money hidden in the mattress, a practice that became more common after the financial crash that led to the Great Depression, where millions saw their funds disappear.
But is this a safe practice?
The benefits of keeping money in the bank
The big banks will say that money is safer in their hands and that if invested in assets or a savings account, the money can be put to work to provide financial returns. However, these returns are often marginal for the average household and should not be overestimated.
The risks of keeping cash at home
Nevertheless, keeping money at home carries some risks. The first and most obvious is that if someone were to break in and steal it, the robber would need to be apprehended for you to see any of it returned unless you have insurance. Even in those cases, there are often limits on how much can be returned. Additionally, keeping cash on hand can pose issues, as proving to the insurance company that the money was stolen can be difficult.
If you choose to store money at home, it is best to keep it in a safe or lock box that very few people know the code for, and never discuss the presence of the cash in public.
What the experts recommend
Some experts believe that the benefits of keeping cash at home outweigh the risks. The 2008 financial crisis caused millions to lose their investments, leading to a decrease in public confidence in the security provided by banks.
Moreover, as many residents across the country can confirm, the formal economy that relies on the Internet can suffer during natural disasters. If you live in an area prone to such events, having cash on hand can make a significant difference. It can mean the ability to buy groceries and other essential goods when the power is out. Certified financial planner (CFP) Eliott Pepper told Bankrate that having enough cash to cover a household’s basic needs for one or two months should be sufficient. Pepper also noted that as more people look to digital payment methods and businesses follow suit, keeping cash at home becomes “provide[s] protection in an extremely adverse scenario.” For those at Bankrate, the amount could be somewhere in the realm of $1,000. However, Danielle Miura, also a CFP
Danielle Miura, a CFP and owner of Spark Financials, told Yahoo! Finance gave a much lower number, around $100 to $200, and instead focused on the protections afforded by a high-yield savings account. Muira’s approach allows for enough cash to be kept on hand to ensure someone can get to the bank and take out any additional funds needed.