The number of people who received federal payments from the Social Security Administration declined by about 13,500, data from the agency showed.
In March, there were about 7.27 million recipients of federal payments compared to 7.284 million in the prior month. Those recipients who qualify based on age were close to 1.115 million last month, slightly more than in February, when that group totaled nearly 1.113 million. Those considered blind and disabled who receive benefits declined in March to 6.156 million, from 6.171 million in February.
The under-18 recipients also fell to about 982,000 last month from 989,000. Those in the 18-to-64 age bracket who received benefits from the federal government totaled 3.96 million, a slight drop from February's data of 3.972 million. For those 65 or older, the figures were about 2.328 million in March, which was higher than the February figure of 2.323 million.
It was unclear what drove the decline in the overall number of people who received federal payments for the month.
Newsweek contacted the Social Security office for comment via email outside of working hours. We will update this article with any information we receive.
The State of Social Security
Millions of older Americans depend on Social Security payments for their daily expenses. This week, it became public that retirees may receive an improved income from the Social Security agency. The so-called cost-of-living adjustment is forecast to be at 3 percent, as part of a response to elevated inflation. This is higher than what was estimated by some, who expected it to be about 2 percent for 2025.
Inflation in the U.S. has remained stubbornly above the central bank target of 2 percent after soaring to 40-year highs following the COVID-19 pandemic. The Consumer Price Index (CPI) inflation in June 2022 rose to 9 percent, marking the largest yearly increase since November 1981.
The Federal Reserve has tightened financial conditions by raising borrowing costs to slow spending, which policymakers hope will lead to a decline in prices. Price increases have slowed to 3.5 percent in March, which falls short of the central bank's target as Americans still face high prices for goods and services.
Some analysts question whether the 3 percent cost-of-living adjustment will go far enough amid the price rises.
"I'm just not sure that's going to be enough," finance expert Michael Ryan told Newsweek last week. "Seniors are already struggling to afford basic necessities like health care, food and housing. This increase may provide some relief, but I worry it still won't fully protect their purchasing power."
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
About the writer
Omar Mohammed is a Newsweek reporter based in the Greater Boston area. His focus is reporting on the Economy and ... Read more
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