Legislation would adjust benefits last expanded 70 years ago to account for inflation

WASHINGTON, D.C. – U.S. Senator Peter Welch (D-Vt.) led Senators Bernie Sanders (I-Vt.) and Elizabeth Warren (D-Mass.) in introducing the Social Security Survivor Benefits Equity Act, legislation that would adjust benefits for the first time in 70 years to cover costs associated with cremation or burials for surviving family members by increasing the Social Security Administration’s (SSA) lump-sum death benefit to account for inflation. Beginning in 2025, survivor benefits would increase from $255 to $2,900 and subsequently ensures that the benefit is indexed to keep up with inflation.

“Funeral costs should be the last thing on the minds of grieving families when they lose a loved one. But because benefits designed to help folks afford funeral expenses haven’t kept pace with inflation, the cost of burying a loved one has become top of mind for many mourning families,” said Senator Welch. “This bill will update Social Security death benefits to help alleviate financial burdens for families following the loss of a loved one.” 

The Social Security Administration provides a lump-sum death benefit to survivors of a beneficiary in the event of their death to help families offset funeral costs. The lump sum payment, which is provided to surviving spouses, dependent children under 18, or children with disabilities, was capped at $255 in 1954. 

In the 1950s, a full memorial and cremation service cost around $700. In Vermont, the average cost for a funeral with a viewing and cremation is $7,023. Nationwide, the median cost of a funeral with a viewing is $8,300, while the average cost for a funeral with cremation is $6,280.  Despite this increase in cost, the SSA’s lump-sum death benefit has remained stagnant at $255. 

The Social Security Survivor Benefits Equity Act is endorsed by Social Security Works and the Strengthen Social Security Coalition. 

“When families lose a loved one, the last thing they should have to worry about is how they will pay for the funeral. Social Security includes a lump-sum death benefit, which should help to cover those costs. However, the value of that benefit has greatly deteriorated over time. The Strengthen Social Security Coalition enthusiastically endorses the Social Security Survivor Benefits Equity Act, which restores this important component of Social Security so that it once again provides peace of mind during life’s most difficult moments,” said Nancy J. Altman, Chair of the Strengthen Social Security Coalition.  

“Social Security Works is proud to endorse the Social Security Survivor Benefits Equity Act. The American people owe Senator Welch an enormous debt of gratitude for this important expansion bill. Social Security’s lump-sum death benefit has not been increased for almost three-quarters of a century, while funeral costs have gone up substantially. Senator Welch is a true champion of working families and their Social Security, the American people’s pension,” said Alex Lawson, Executive Director of Social Security Works. 

Learn more about the Social Security Survivor Benefits Equity Act. 

Read the full text of the bill. 

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