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Social Security may provide a one-time $255 death benefit to your loved ones when you die.
But that amount has not changed in 70 years.
A new bill has been introduced in the Senate to raise that amount to $2,900 to reflect today’s cost of living.

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When a Social Security beneficiary dies, their loved ones may qualify for a one-time $255 lump-sum death payment.
Yet that amount has not changed in 70 years — since 1954 — while inflation has pushed the costs for funerals higher.

On Wednesday, Sen. Peter Welch, D-Vt., introduced a new bill, the Social Security Survivor Benefits Equity Act, to raise the lump-sum death benefit to $2,900 to reflect today’s cost of living.
The bill is co-led with Sens. Bernie Sanders, I-Vt., and Elizabeth Warren, D-Mass.
The change is aimed at helping to alleviate the financial burden for families following the loss of a loved one, Welch said in a statement.
“Funeral costs should be the last thing on the minds of grieving families when they lose a loved one,” Welch said. “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.”
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A full memorial and cremation service costed around $700 in the 1950s, when the $255 lump sum death payment still in effect today was established, according to Welch’s proposal.
Today, the median cost of a funeral with casket and burial is $8,300, while the average cost for a funeral with cremation is $6,280, according to the National Funeral Directors Association.
Under the terms of the bill, the higher $2,900 death benefit would go into effect in 2025. That sum would adjusted for inflation to the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, which is used to calculate Social Security’s annual cost-of-living adjustments.
The proposal has been endorsed by advocacy organizations Social Security Works and the Strengthen Social Security Coalition.

What happens to Social Security benefits when you die

The current $255 one-time lump-sum death payment is available to Social Security beneficiaries’ survivors, provided they meet certain requirements.
“If you’ve worked long enough, we make a one-time payment of $255 when you die,” the Social Security Administration states in a guide on survivors’ benefits.
Survivors — such as a spouse or child — must apply for the payment within two years of the date of death, according to the agency.
A surviving spouse may be eligible for the death payment if they were living with the person who passes away. If the spouse was living apart from the deceased but was receiving Social Security benefits based on their record, they may also be eligible for the $255 payment.
If there is no surviving spouse, children of the deceased may instead be eligible for the payment, as long as they qualify to receive benefits on their deceased parent’s record when they died.

While funeral homes often report a death to the agency, survivors should still notify the Social Security Administration as soon as possible when a beneficiary dies to cancel their benefits, according to Jim Blair, vice president of Premier Social Security Consulting and a former Social Security administrator.
Though a one-time death payment may be available, any benefit payments received by the deceased in the month of death or after must be returned, according to the Social Security Administration. However, how this rule is handled depends on the timing of the death.
If a deceased beneficiary was due a Social Security check or a Medicare premium refund when they died, a claim may be submitted to the Social Security Administration.
Certain family members may be eligible to receive survivor benefits based on the deceased beneficiary’s earnings record starting as soon as the month they died, according to the Social Security Administration.
That may include a surviving spouse age 60 or older; a surviving spouse 50 or older who has a disability; a surviving divorced spouse if they meet certain qualifications; or a surviving spouse who is caring for a deceased’s child who is under age 16 or who has a disability.
Other family members may also qualify, including an unmarried child of the deceased who is under 18, or up to 19 if they are a full-time elementary or secondary school student, or age 18 and older with a disability that began before age 22; stepchildren, grandchildren, step-grandchildren or adopted children under certain circumstances; and parents ages 62 or over who relied on the deceased for at least half of their financial support. More

Financial TikTok, also known as #FinTok, is now one of the most popular sources for financial information, tips and advice, particularly among Gen Z.
But more than a quarter of social media users have fallen for financial advice or information on TikTok or Instagram that turned out to be false or misleading, a recent report found.
“If it sounds amazing, it’s probably too amazing,” said Jean Chatzky, CEO of HerMoney.com.
Before heeding any advice, check out a finfluencer’s qualifications as well as potential financial motivations.

From putting your toddler children on your payroll to claiming your car as a business expense, TikTok is chock-full of potentially bad money advice.
Yet, financial TikTok, also known as #FinTok, is one of the most popular sources for financial information and tips, particularly among Generation Z.

Now, 27% of social media users say they have fallen for financial advice or information on social media that turned out to be false or misleading, according to a new report by Edelman Financial Engines.
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Roughly 20% have even fallen for such misleading content multiple times, the report found. Edelman Financial Engines polled more than 3,000 adults over 30 from June to July.
“It’s hard to discern what’s good advice from what’s not good advice,” said Jean Chatzky, personal finance expert and CEO of HerMoney.com, who worked with Edelman Financial Engines on the report. However, “if it sounds amazing, it’s probably too amazing.”
Heavy social media users, likely younger Americans, may be particularly susceptible to believing inaccurate financial information found there, according to Edelman Financial Engines.

Gen Zers may be more likely to get duped

With less access to professional financial advisors and a preference for obtaining information online, Gen Zers are more likely than any other generation to engage with finfluencer content on TikTok, YouTube and Instagram, according to a January report by the CFA Institute.
In fact, Gen Zers are nearly five times more likely than adults in their 40s or older to say they get financial advice — including stock tips — from social media, a separate CreditCards.com report from April also found.

In some cases, having such an accessible source for money-related subjects can help, particularly if it encourages better budgeting or savings habits, said Isabel Barrow, the director of financial planning at Edelman Financial Engines.
However, “you have to take everything that you hear and see and read on social media with many grains of salt,” Barrow said, especially when it comes to topics such as how to avoid or limit taxes.
“It may be good advice for someone but it is not a one-size-fits-all thing.”

‘Do your own vetting’

While there are ways to vet traditional financial advisors, it’s much harder to find out the intentions or possible conflicts of interest of someone giving advice online.
“Check out who you are listening to and what their background is and whether they actually have the credentials to be leading you down the road you are about to follow,” Chatzky said.
Until there is more oversight, the CFA Institute also advises consumers to look into a finfluencer’s qualifications as well as potential financial motivations such as commissions or sponsorships, and cross-check any information offered online.
“You do need to do your own vetting,” Barrow said.
To verify a certified financial planner’s background, go to the CFP Board’s website. Brokers and brokerage firms can be looked up on the Financial Industry Regulatory Authority website and investment advisors can be checked out on the U.S. Securities and Exchange Commission’s website.
For other professional designations, go to the FINRA page that lists them, which includes links to the designation organizations.
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Traders work on the floor of the NYSE. 

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Here’s what CNBC TV’s producers were watching as the Dow ended a four-day win streak Wednesday, and what’s on the radar for the next session.

Micron Technology

On Thursday, Micron’s CEO Sanjay Mehrotra will be on CNBC TV in the 9 a.m. hour, Eastern time.
The chip giant reported quarterly results Wednesday afternoon, beating estimates.
The company’s chips are used in the artificial intelligence industry.
Micron said some of its chips for next year are already pre-sold out.
The stock is up 14% after hours. However, Micron remains about 35% from the June high.

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Micron Technology shares in 2024

Southwest Airlines

CNBC TV’s Phil LeBeau will report on Southwest Airlines’ investor day.
The company is fighting off an aggressive push from activist investor Elliott Management.
News of the investment came out June 10.
Since then Southwest is barely up, just 2%.
The stock took a hit Wednesday, falling about 4.6%. It is 19% from the February 52-week high.

Biogen

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Biogen shares in 2024

Hooray for Hollywood

Class B shares of Fox hit a 30-month high Wednesday. The stock is up 19% in three months.
Live Nation Entertainment hit a 29-month high Wednesday. The stock is up 9.5% in September.
Netflix hit another all-time high. The stock is up 48% in 2024.

The industrials

The S&P sector is up about 10% in three months.
Several industrials hit all-time highs Wednesday. Thanks to CNBC’s Chris Hayes for the list.
Dover hit an all-time high. 
GE Vernova hit an all-time high. The stock is up 8% in a week and 40% in three months.
W.W. Grainger hit an all-time high.  
Howmet Aerospace hit an all-time high. It is up 27.5% in three months.
Lockheed Martin hit an all-time high. It is up 23.5% in three months.
Parker-Hannifin hit an all-time high. It is up 23% in three months.
Pentair hit an all-time high. It is up 11% in a month and about 30% in three months.
TransDigm Group hit an all-time high.
Trane Technologies hit an all-time high. The stock is up nearly 10% in a month.
Westinghouse Air Brake hit an all-time high. The stock is up almost 10% in a month. More

Women and Wealth Events
Your Money

The Federal Reserve may cut another 50 basis points before the end of the year, according to HSBC’s forecast.
Meanwhile, the coming November election may usher in more market volatility.
Investors who take certain steps to protect their money now may fare best, experts say.

Thomas Barwick | Digitalvision | Getty Images

Big changes may be ahead for the U.S. economy between now and the end of the year.
Investors can get ahead of those changes by taking steps to prepare now, experts say.

The Federal Reserve last week slashed interest rates by 50 basis points, in a move expected to kick off more cuts, Racquel Oden, U.S. head of wealth and personal banking at HSBC said Wednesday during CNBC’s Women & Wealth event.
“We know there needs to be a continuation of rate cuts,” Oden said. “The new debate is the question, is the next one going to be another 50 [basis points], or will it be 25 [basis points]?”

More from Women and Wealth:

Here’s a look at more coverage in CNBC’s Women & Wealth special report, where we explore ways women can increase income, save and make the most of opportunities.

HSBC expects there will likely be a 25-basis point rate cut in November, followed by another cut of the same size in December, for a total of 100 basis points by the end of the year.
For consumers, lower interest rates will lower the cost of borrowing on everything from mortgages to credit cards to auto loans. But it will also mean lower returns on cash savings.
The good news is the pace of inflation has come down, Oden noted. Meanwhile, consumer confidence and spending have stayed strong.

Expect market volatility ahead

Yet the U.S. faces another looming uncertainty with the upcoming November election. Market volatility, which tends to increase in September, will likely continue in October, according to Oden.
“Pre- and post-election, we will still see some volatility,” Oden said.
Investors who withstand the markets ups and downs may be rewarded.
Market rallies traditionally follow elections, Oden said. Moreover, the fourth quarter earnings season also tends to send markets higher.
“We do believe there’ll be a strong fourth quarter rally,” Oden said.
For investors — especially women, who are more likely to second-guess their decisions — having confidence can help, especially in uncertain times, she said.
“We all get what I call decision paralysis, because we’re worried about failure,” Oden said. “What we have to do is really change that pendulum to be really focused on not on failure but .. the opportunity for success.”

Defer to your personal investment policy

The best policy for any investor is to have a plan and stick with it, said Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners in Jacksonville, Fla.
“No matter what happens with rate cuts or volatility, you should have that investment policy and let that be your road map,” said McClanahan, who is also a member of the CNBC FA Council.
For example, if you’re young and can afford to take risks, you may have more of your portfolio in stocks and less in bonds, McClanahan said. Older investors who are closer to retirement, and therefore more risk averse, may want to have a more even stock-bond split.

With interest rates poised to decline, investors would also be wise to lock in today’s higher interest rates on cash, where they can, McClanahan said.
The easiest way to do that is to buy certificates of deposit, particularly those with longer terms, she said.
“They don’t pay as much as one-year CDs, but you’re locking that rate in for five years,” McClanahan said.
“If interest rates go down next year, you’ve got that higher interest rate paying you for at least five years,” she said. More

After years of higher yields on cash, the Federal Reserve’s shifting policy means lower future returns on savings, certificates of deposit and money market funds.
Despite falling rates, investors should still keep emergency funds “liquid,” meaning the cash can be easily tapped, financial experts say.
“You don’t want to mess with your safety net,” said certified financial planner Kathleen Kenealy, founder of Katapult Financial Planning.

Catherine Mcqueen | Moment | Getty Images

After years of higher yields on cash, the Federal Reserve’s shifting policy means lower future returns on savings, certificates of deposit and money market funds.
Despite falling rates, investors should still keep emergency funds “liquid,” meaning the cash can be easily tapped, financial experts say.

Advisors typically suggest keeping at least three to six months of cash reserves for emergencies, such as a job layoff. But that threshold could be higher, depending on your circumstances.
Keep those funds in high-yield savings or a money market fund, said certified financial planner Kathleen Kenealy, founder of Katapult Financial Planning in Woburn, Massachusetts.
“You don’t want to mess with your safety net,” she said.
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The Fed last week slashed its benchmark interest rate by a half percentage point, which was the first rate cut since early 2020. Banks use the federal funds rate to lend to and borrow from one another. As a result, it influences consumer loans and savings rates.

While top yields have already fallen slightly, many savers are still getting relatively high rates on cash.
The top 1% average for savings was hovering near 4.75%, and the highest one-year CDs were more than 5%, as of Sept. 25, according to Deposit Accounts. Meanwhile, the biggest retail money market funds were still paying around 5%, as of Sept. 24, according to Crane Data.
If you have been earning 4% to 5% on emergency savings, you could see a “small reduction” in the short term, said Kenealy, who recommends keeping emergency funds where they are.

Don’t put your emergency fund at risk

After several months of stock market gains, it may be tempting to funnel emergency savings into higher-paying assets. The S&P 500 was up about 20% year to date and notched a 52-week high on Sept. 25.
But investing your cash reserves is a mistake, experts say. Generally, short-term savings, especially funds that could be needed within the next year, should stay out of the market.  
“You don’t want to put your emergency funds at risk,” said CFP Shehara Wooten, founder of Your Story Financial in Fairborn, Ohio. 

You don’t want to put your emergency funds at risk.

Shehara Wooten
Founder of Your Story Financial

Whether you are dealing with a job loss or major car repair, you need easily accessible cash. Otherwise, you could have to sell invested emergency funds when the stock market is down, she said. 
“Don’t make rash decisions based on what’s going on at the Federal Reserve,” Wooten said.

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Women and Wealth Events
Your Money

About 70% of the gender wage gap is due to women occupying different positions compared to men, Professor Kelly Shue said at CNBC’s Women & Wealth event Wednesday.
Although female workers typically outperform their male counterparts, men are more likely to get promoted, Shue’s research shows.

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Progress toward narrowing the gender pay gap has mostly stalled, in part due to something researchers call the “gender promotion gap.”
“Women have noticeably lower promotion rates compared to men in the same firm, in approximately the same position,” Kelly Shue, a professor of finance at Yale School of Management, said at CNBC’s Women & Wealth event Wednesday.

Women are about 13% less likely to be promoted than men, according to Shue’s research.
That imbalance is a major driver in the persistent income inequality between men and women, she said.

More from Women and Wealth:

Here’s a look at more coverage in CNBC’s Women & Wealth special report, where we explore ways women can increase income, save and make the most of opportunities.

About 70% of the gender wage gap is due to women occupying different positions compared to men, according to Shue. But even when men and women occupy the same position, women are paid less, she added.
As it stands, women earn just 84 cents for every dollar earned by men, according to an analysis of U.S. Census Bureau data by the National Women’s Law Center.

Women are ‘underrepresented from the start’

Women in corporate America have come a long way but there are still barriers at the outset, largely due to systemic bias, the annual Women in the Workplace study from Lean In and McKinsey also found.

“They remain less likely than men to be hired into entry-level roles, which leaves them underrepresented from the start,” Lean In’s report notes.
From there, advancements are slower at the manager and director levels, the report found: Only 81 women are promoted for every 100 men.
“Because of this ‘broken rung’ in the corporate ladder, men significantly outnumber women at the manager level, making it incredibly difficult for companies to support sustained progress at more senior levels,” according to Lean In’s report.

When it comes to promotions, “unconscious bias can creep in,” Shue said. When we imagine the most successful managers, they tend to have stereotypically male qualities, she said, “such as being optimistic, courageous, having an aggressive leadership style, embracing competition, etc.”
To alleviate some of that bias, “a lot of the advice has been focused on how female workers can change how they behave, and advocate for themselves and engage in some degree of self-promotion,” Shue said.
“I think that could be affective,” she added, “but I would also argue that instead of putting all of the burden on women to behave differently, and to advocate for themselves, it would be great if firms and the managers in charge of these decisions also stop rewarding… this aggressive behavior to the same extent and instead just recognize that many female workers actually have high potential.” More

Lower mortgage rates make monthly mortgage payments more affordable. In some places, cheaper than rent, per a Zillow analysis.
While housing overall continues to be expensive and unaffordable for most buyers, “this is as good as it gets,” said Orphe Divounguy, senior economist at Zillow.
Here’s what other experts say.

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While housing affordability remains a challenge for many buyers in the U.S., conditions are somewhat improving due to lower mortgage rates.
Buyers need to earn $115,000 to afford the typical home in the U.S., according to a new report by Redfin, an online real estate brokerage firm. That’s down 1% from a year ago, and represents the first decline since 2020.

Housing payments posted the biggest decline in four years, Redfin also found. The median mortgage payment was $2,534 during the four weeks ending Sept. 15, down 2.7% from a year ago.
Both declines stem from lower mortgage rates, said Daryl Fairweather, chief economist at Redfin.
As of Sept. 19, the average 30-year fixed rate mortgage is 6.09%, down from 6.20% a week prior, according to Freddie Mac data via the Fed. Rates peaked this year at 7.22% on May 2.
“The only reason mortgage payments are down is because of the rate effect,” Fairweather said.
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Challenges remain: The typical household earns 27% less than what they need to afford a home, about $84,000 a year, per Redfin data. Home prices are still high, too. The median asking price for newly listed homes for sale is $398,475, up 5.4% from a year ago, Redfin found.
While housing overall continues to be unaffordable for most buyers, “this is as good as it gets,” said Orphe Divounguy, senior economist at Zillow, as the market is generally seeing lower mortgage rates, more inventory and low buyer competition.
Here’s what buyers can expect in the coming months.

‘Mortgage rates will go by the way of the economy’

Lower home loan rates provide “a great opportunity for buyers who have been waiting,” Divounguy said.
Just because the Federal Reserve cut interest rates, it doesn’t “necessarily guarantee mortgage rates will continue to fall,” he said.
While mortgage rates are partly influenced by the Fed’s policy, they are also tied to Treasury yields and other economic data.
“Mortgage rates will go by the way of the economy,” said Melissa Cohn, regional vice president of William Raveis Mortgage in New York.
“If the economy shows signs of weakening … rates will come down,” Cohn said. “If we see the opposite, and that the economy is chugging along and employment gets stronger, it’s quite possible that rates will go up.”

More homes are coming on the market

On top of lower mortgage rates, a higher inventory of homes for sale makes the housing market more favorable for buyers, said Divounguy.
There were 1,350,000 homes for sale by the end of August, up 0.7% from a month prior, according to the National Association of Realtors. That inventory level was up 22.7% compared with August 2023.

Meanwhile, homebuilder confidence in the market for newly built single family homes improved in September, according to the National Association of Home Builders, or NAHB. Its survey also shows that the share of builders cutting prices in September was 32%, down one point. It’s the first decline since April, according to NAHB.
“That tells me that some builders are probably starting to see some increase in foot traffic,” said Divounguy, and that the market could get competitive again.
Price growth will depend on the level of existing home inventory, said Robert Dietz, chief economist at NAHB.
“Existing home inventory is expected to rise as the mortgage rate lock-in effect diminishes, placing some downward pressure on prices as well,” Dietz said.

Wait and ‘you’re trading one difficulty for another’

The housing market is not going to get generally worse over the next 12 months, said Fairweather. If house hunters are discouraged because they haven’t found a home, they might have a better chance next year when there are more listings, Fairweather said.
But they risk higher competition, she warned.
“You’re trading one difficulty for another difficulty,” Fairweather said.
If mortgage rates further decline next year, the number of homes for sale might grow. Most homeowners are sitting on loans with record-low mortgage rates, creating a so-called “lock-in effect,” or “golden handcuff” effect, where they don’t want to sell and finance a new home at a higher rate.
“We’ll probably see more people who are buying, or selling to buy again,” said Fairweather, because high borrowing costs held them back. More

More than one-third of workers believe they will need more than $1 million to retire comfortably, according to a recent Bankrate report.
And yet, 4 in 10 workers are behind on retirement planning and savings, largely due to debt, insufficient income or getting a late start, according to a separate CNBC survey.
The good news is that workers can still catch up, says Bankrate’s senior economic analyst Mark Hamrick.

By some measures, retirement savers, overall, are doing well.
As of the second quarter of 2024, 401(k) and individual retirement account balances notched the third-highest averages on record, helped by better savings behaviors and positive market conditions, according to the latest data from Fidelity Investments, the nation’s largest provider of 401(k) savings plans.

The number of 401(k) millionaires also hit a new all-time high.
The average 401(k) contribution rate, including employer and employee contributions, now stands at 14.2%, just below Fidelity’s suggested savings rate of 15%.

Yet there is still a gap between what savers are putting away and what they think they should have once they stop working.
Overall, 35% of Americans believe they will need more than $1 million to retire and live comfortably, according to a new report by Bankrate.com. Another 10% think they need $750,001 to $1 million.
Although most workers have a specific retirement goal in mind, only 49% believe it is likely they will be able to meet their target and 48% say it is unlikely they will save the amount they need, the report also found. Bankrate polled 2,445 adults in mid-August. 

40% of workers are behind on retirement planning

In fact, 40% say they are behind on retirement planning and savings, largely due to debt, insufficient income or getting a late start, according to a recent CNBC survey, which polled more than 6,600 U.S. adults in early August.
Older generations closer to retirement age are more likely to regret not saving for retirement early enough, the CNBC survey found. More than a third (37%) of baby boomers between ages 60 and 78 said they felt behind, compared with 26% of Gen Xers, 13% of millennials, and only 5% of Gen Zers over the age of 18.
“There are so many individuals, young, mid-career and deep into their career, that are not saving enough for a healthy and secure retirement,” Jacqueline Reeves, the director of retirement plan services at Bryn Mawr Capital Management, recently told CNBC.
More than any other money misstep, not saving for retirement early enough is the biggest financial regret for 22% of Americans, according to another recent report by Bankrate. 
“If you do less at 30, you’ll still have more at 60 than if you did more at 50,” Reeves said.

The retirement savings gap

Other reports show that a retirement savings shortfall is weighing heavily on Americans, especially as they approach retirement age.
An August LiveCareer survey found that 82% of workers have considered delaying their retirement due to financial reasons, while 92% fear they may need to work longer than originally planned. 
Roughly half of Americans worry that they’ll run out of money when they’re no longer earning a paycheck — and 70% of retirees wish they had started saving earlier, according to another study by Pew Charitable Trusts from January.
Among middle-class households, only 1 in 5 are very confident they will be able to fully retire with a comfortable lifestyle, according to a recent Retirement Outlook of the American Middle Class report by Transamerica Center for Retirement Studies, which broadly defined the middle class as those with an annual household income between $50,000 and $199,999.
“America’s middle class is navigating the turbulent post-pandemic economy and high rates of inflation,” said Catherine Collinson, CEO and president of Transamerica Institute. “They are focused on their health and financial well-being, but many are at risk of not achieving a financially secure retirement.”

How to overcome a savings shortfall

Many of the workers who feel behind on their savings are still years, if not decades, away from retirement, explained Bankrate’s senior economic analyst Mark Hamrick.
“Those who strive to prioritize retirement savings, as they should, have reason to believe they can achieve their goal,” Hamrick said. “It takes information, focus and hard work, but the good news is that it can be done.”
In addition to making automatic contributions into a retirement savings plan, experts often recommend opting in to an auto-escalation feature, if your company offers it, which will automatically boost your savings rate by 1% or 2% each year up to a set cap.
Savers closer to retirement can even turbocharge their nest egg.
Currently, “catch-up contributions” allow savers 50 and older to funnel an extra $7,500 into 401(k) plans and other retirement plans for 2024, beyond this year’s $23,000 employee deferral limit. The catch-up contributions for IRAs is an additional $1,000 on top of the $7,000 limit for 2024.
Most experts also recommend meeting with a financial advisor to shore up a long-term plan. There’s also free help available through the National Foundation for Credit Counseling.  
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