$250 Stimulus Checks for Retirees In Mayby Tim Manni
More than 50 million retired Americans are due to receive a $250 stimulus check next month. The checks are part of the $787 billion stimulus package signed into law in February. The money targets older consumers who don’t qualify for the “Making Work Pay” tax break, which provides individuals with up $400 and couples up to $800:
[The $250 checks] will go to people who receive Social Security, Supplemental Security Income, railroad retirement or veteran’s disability benefits.
The Social Security Administration told lawmakers that the stimulus checks are expecting to flow more than $13 billion dollars into the struggling economy:
“We are at the moment of truth for the tax cuts and probably the stimulus more broadly,” [Mark] Zandi said. “If we don’t see an improvement in retailing and if the job cutting doesn’t abate in response this summer and fall … it either hasn’t worked or it wasn’t enough.”
The extra Social Security payments should boost spending because retirees on fixed incomes are more likely to spend them than workers earning more money, said Diane Swonk, chief economist at Mesirow Financial.