U.S. Seniors Could Cash in on Second Stimulus

brianoconnell

With 90% of U.S. seniors over the age of 65 cashing Social Security checks these days, all eyes from the senior set are on a second stimulus package that would beef up their retirement income.

According to the U.S. Social Security Administration, the average senior collects $1,503 per month in Social Security. That's not a big number, but added to the retirement funding mix, it sure helps older Americans live with more financial stability in their golden years.

With the pandemic still rumbling along, 2020 has been a tough year for every American, but U.S. seniors are actually pulling in more cash via Social Security - and that stash will likely grow larger.

Here's the deal. 

With the first COVID-related stimulus package each U.S. senior received $1,200 or $2,400 per household (some high earners received less or nothing at depending on income status) from the Coronavirus Aid, Relief and Economic Security (CARES) Act.

Added to the average $1,503 per month in Social Security payments, the $1,200 stimulus payout amounted to a one-time raise of 6.65% for the average older American who receives a Social Security payment every month.

Not a huge windfall, but not bad.

Now, with Congress putting the financial touches on a second stimulus package, via the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, U.S. seniors may be in line for a second stimulus check of $1,200 - if the HEROES ACT passes the U.S. Senate (it has already cleared the House of Representatives.)

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Another $1,200 for each senior would result in a total gain of $2,400 in extra cash for U.S. seniors in 2020. Added to the average Social Security payment of $1,503, plus the first $1,200 and the second $1,200 payment, and the total tally for the year is $20,436 -or a 13.3% gain in extra income from Uncle Sam for U.S. seniors.

While the HEROES ACT has triggered a big debate about extra COVID funding in Congress, both sides of the political aisle agree that a second stimulus payment to all American adults and their dependents is in the cards.

That means another tax-free $1,200 payment from the government and a fairly substantial 13.3% raise for U.S. seniors in 2020.

In the silver linings department, that's a good chunk of change for older Americans - who certainly need all the financial help they can get in a year of pandemic.