Sen. Elizabeth Warren, D-Mass., said Thursday that Supplemental Security Income, a part of Social Security, needs to be reformed and called for passage of the SSI Restoration Act, saying outdated rules "have trapped" four out of 10 recipients in poverty.
During a hearing held by the Senate Special Committee on Aging, which focused on financial literacy, Warren said that while financial literacy is important for those "trying to make key decisions like planning for retirement," for low-income families "navigating a thin social safety net that gives them too little help, all the education and counseling in the world can't magically make 2 + 2 add up to 10."
SSI "provides a critical lifeline for 8 million low-income elderly and disabled Americans, including over 1 million disabled children and the families that care for them," Warren said. "But right now, our rules are outdated, they're punitive, and they squeeze way too many struggling families out of this program and trap about four out of 10 recipients in poverty."
"The maximum monthly SSI benefit — maximum — is $841 in 2022," Warren said. "The average benefit is below $600."
Warren asked Cindy Hounsell, president and founder of the Women's Institute for a Secure Retirement, who testified at the hearing, if $600 a month is "adequate to live in financial security, and save for retirement?"
Responded Hounsell: "Thanks, Senator, for covering that issue. No, it's not in any way adequate. Obviously, it's only half of the poverty level for elders."
