There can be a lot of stress when a loved one passes. Sometimes that stress is compounded by new worries as beneficiaries realize their household finances may no longer enough.
What Happens
When a Social Security beneficiary passes, there are individuals who are eligible to receive survivor benefits.
Survivor benefits are Social Security benefits that are available to “the surviving spouse, child, or parent of a worker who dies,” ssa.gov explains. These benefits can be a great help, however, they can also be too little.
Many senior citizens rely on both sets of monthly benefits to live comfortably. However, when both spouses receive benefits and one passes, the survivor does not receive the same household income each month. Rather, the survivor will receive either of the two; their monthly finances shrink.
The increasing financial responsibility seniors are taking means this decrease in monthly income can become problematic.
More Financial Responsibility
Senior citizens are taking on more financial responsibility today than ever before. According to CNBC, many employers opt to offer 401(k) plans rather than pensions.
Why does this matter? Well, to answer that we need to look at the difference between the two plans.
A pension plan is a monthly check during retirement that is funded by the employer. This plan is based on a formula that factors in age, salary, and how long an employee worked with the company.
In contrast, a 401(k) is funded by the employee. The employee’s salary is partially held back by the employer and put into a fund. This fund can then be received upon retirement.
Why Change is Needed
These additional costs are not calculated into the retirement benefits. For someone who has learned to live with a set income, it is difficult to suddenly adjust.
On top of that, these are individuals who are dealing with a loss, there is no need to cause them worry about finances on top of their grief.
Therefore, it is more important than ever to offer as much financial stability as possible for seniors. That is why we wrote our bill, The Senior Citizens Bill of Rights.
This bill enacts various rights every senior citizen deserves, allowing them to have improved financial security. Included is the right for beneficiaries to maintain their household income, even after a member of the household has passed.
Read more about this groundbreaking piece of legislation and find out how you can help urge the politicians in Washington to take a stand for senior citizens.
