As September draws to a close, Social Security beneficiaries should monitor their bank accounts for the final payments of the month. If you are a retiree, survivor, or disabled individual receiving Social Security benefits and were born between the 21st and 31st of any month, you can expect your last September payment to arrive this week. Here’s what you need to know about the upcoming payment schedule, the factors that influence benefit amounts, and the changes coming with the next Cost of Living Adjustment (COLA).
Understanding the Social Security Payment Schedule
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The Social Security Administration (SSA) follows a structured payment schedule to ensure that more than 70 million beneficiaries receive their payments on time. The SSA divides the schedule according to the beneficiaries’ birth dates and the date they first claimed their benefits.
- For those who claimed benefits before May 1997: Payments are made on the third day of every month, regardless of birth date.
- For those who claimed benefits after May 1997: Payments are based on birth dates and follow this schedule:
- From the first to the tenth of the month, we make payments on the second Wednesday.
- From the 11th to the 20th of the month, we make payments on the 3rd Wednesday.
- From the 21st to the 31st of the month, we make payments on the 4th Wednesday.
In addition to these regular benefits, the SSA also delivers Supplemental Security Income (SSI) payments on the first day of the month to low-income seniors, disabled individuals, and children facing financial hardships.
How much can beneficiaries expect?
The amount of Social Security benefits varies based on several factors, including a person’s full retirement age (FRA), work history, and the amount of Social Security taxes paid throughout their career. Here’s a breakdown of expected payments for different groups:
- Retirees: The average retiree receives approximately $1,900 per month, but those who delay retirement until age 70 and have paid the maximum taxable income can receive up to $4,873 monthly.
- Disabled individuals: The average monthly benefit for disabled individuals is around $1,537, though the maximum payment for those with the highest taxable wages before becoming disabled is $3,822. Blind recipients are eligible for up to $2,590 per month.
- Supplemental Security Income (SSI) recipients receive an average SSI payment of $698 per month, with individuals receiving up to $943 and couples receiving up to $1,415.
Upcoming COLA Changes: What to Expect in 2024
The SSA adjusts Social Security payments each year through the Cost of Living Adjustment (COLA), which is based on inflation rates measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). We currently project the COLA for 2024 to be around 2.5%, a decrease from the previous year’s 3.2% adjustment.
Here’s what the new COLA could mean for beneficiaries:
- Retirement Benefits:
- Average monthly payment: From $1,900 to $1,948 (+$48)
- Age 62: From $2,710 to $2,778 (+$68)
- Age 67: From $3,822 to $3,918 (+$96)
- Age 70: From $4,873 to $4,995 (+$122)
- Disability Benefits:
- Average monthly payment: From $1,537 to $1,575 (+$38)
- Maximum payment for blind recipients: From $2,590 to $2,655 (+$65)
- Maximum disabled benefit: From $3,822 to $3,918 (+$96)
- SSI Benefits:
- Average monthly payment: From $698 to $715 (+$17)
- Individuals: From $943 to $967 (+$24)
- Couples: From $1,415 to $1,450 (+$35)
Important considerations for beneficiaries
In addition to regular Social Security payments, some beneficiaries may be eligible to receive both retirement benefits and Supplemental Security Income (SSI), depending on their financial situation. If you meet the eligibility requirements for both programs, understanding the calculation of your payments is crucial to optimize your benefits.
The SSA encourages beneficiaries to use electronic signatures and other digital tools to manage their accounts more efficiently as it continues to modernize its services. This will streamline the process of updating personal information, applying for benefits, and staying informed about payment schedules.
Final Thoughts
As September comes to a close, beneficiaries born between the 21st and 31st of any given month should prepare to receive their final Social Security payment for the month. With the projected COLA changes on the horizon, 2024 will bring adjusted payments that aim to offset inflation and maintain purchasing power for retirees, survivors, and disabled individuals. Keep an eye on upcoming announcements from the SSA to stay informed about changes to your benefits and payment schedule.