Although summer has arrived and many of us are thinking about taking a break, the Social Security Administration (SSA) continues its work without pause. In July, the SSA is continuing to distribute monthly payments to beneficiaries.
This month, the four batch of checks was delivered on July 24. Thanks to the cost-of-living adjustment, the average monthly pay of retired workers has increased this year to $1,900.
Who Is Eligible for These Social Security Payments (SSA)
The Social Security provides monthly benefits to several groups of people: retired workers, survivors, and those receiving disability benefits, such as Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).
However, to avoid administrative issues, payments are not made all on the same day. This staggered schedule can cause confusion among beneficiaries unfamiliar with the SSA’s payment calendar. But once understood, the process is quite straightforward.
Social Security Administration: July Payment Schedule Overview
The payment schedule for the July is based on the beneficiaries’ birth dates:
- Wednesday, July 24th: Retirement benefits for those born between the 21st and the 31st of any month, who began claiming benefits after May 1997.
To stay informed about payment dates throughout the year, beneficiaries can check the complete Social Security payment schedule for 2024.
Generally, the dates do not vary much: benefits are distributed on the 1st and 3rd of each month for special cases and the second, third, and fourth Wednesdays of the month for the rest of the beneficiaries, unless a weekend or a federal holiday pushes the payment to the previous business day.
How payments are made and what to do in case of delays
Most payments are sent via direct deposit to the bank account provided by the beneficiaries to the SSA. This is the fastest and safest way to receive the money, although delays can occur due to bank processing times.
These times are usually consistent each month, so if you have concerns, it’s advisable to contact your bank to learn about their processing protocols.
For those receiving payments by regular mail, paper checks are sent with the intention of arriving on the promised date. However, external factors such as weather or the routes of the U.S. Postal Service can delay delivery. If a beneficiary does not receive their payment on the expected date, the SSA advises waiting three additional days before contacting them to account for possible mail delays.
How does the SSA handle large past-due benefit payments?
When someone is due a large sum of overdue benefits that meets a certain threshold, the SSA must pay these benefits in installments. They cannot pay them in a single lump sum. Specifically:
- Unpaid benefits must be paid in parts. This happens if the amount, after some reductions, equals or exceeds 3 times the top federal benefit rate plus any federally-run state supplement.
- These installment payments are made in not more than 3 installments at 6-month intervals. The first and second payments cannot exceed 3 times the max monthly benefit.
- Exceptions to the installment requirement include if the person has a condition expected to result in death within 12 months. Or, if they will remain ineligible for benefits for the next 12 months.
- The first and second installment amounts can be increased. This is to cover certain debts and expenses, like for food, clothing, shelter, and medical needs. It can also be used to buy a home.
Impact of Cost-of-Living Adjustments
The 3.2% increase in Social Security payments this year reflects cost-of-living adjustments, aimed at helping beneficiaries maintain their purchasing power in the face of inflation. These adjustments are crucial to ensure that payments remain adequate and relevant in the current economic context, allowing beneficiaries to cover their basic needs.
For those who want to plan ahead, the Social Security payment schedule for 2024 is available and provides a detailed breakdown of payment dates. Knowing these dates is essential for beneficiaries to manage their finances effectively and ensure they receive their payments on time.
Exploring How Cost-of-Living Adjustments Affect Retirees: Examining Recent Changes
Cost-of-living adjustments (COLAs) play a crucial role in ensuring that retirees can maintain their purchasing power as prices rise over time. Let’s explore how recent changes to COLAs have impacted retirees and what it means for their financial well-being.
Understanding Cost-of-Living Adjustments
- COLAs are periodic increases made to Social Security benefits and some pension payments.
- They are intended to help retirees keep pace with inflation and maintain their standard of living.
- COLAs are usually tied to the CPI-W. The CPI-W measures changes in prices.
Recent Changes to COLAs
- In recent years, there have been several notable changes to how COLAs are calculated and applied.
- For example, in 2021, the Social Security Administration announced a 5.9% COLA for benefits in 2022, the largest increase since 1982.
- However, some argue that the CPI-W is inaccurate. It does not reflect retiree spending well. Retirees spend more on healthcare and housing than the general population.
Impact on Retirees
- The recent changes to COLAs have had mixed effects on retirees.
- The bigger 2022 COLA helped offset some of the impact of rising inflation. But, many retirees still struggle to keep up with rising costs.
- Additionally, some retirees may face higher Medicare premiums or taxes on their benefits, which can erode the value of their COLA.