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Social Security payment to retirees in hours

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The first round of retirement Social Security payments for July will be distributed on Wednesday to senior citizens, with some beneficiaries potentially receiving up to $4,873, depending, of course, on their retirement age and income level. Those who were born between the 1st and 10th of any month, and that started claiming benefits post May 1997, are scheduled to receive their payments on Wednesday, July 10.

However, even if the checks will be received on the same date, the majority of recipients will receive lesser amounts. The specific payment each person receives is influenced by two factors, their total earnings over their career and the age at which they chose to retire. There are three ages that are taken as comparison meters for retirement data, and they are 62, the earliest you can claim benefits, 66 or 67 depending on your date of birth wich would be full retirement age (FRA) and 70, the age at which the maximum benefits is available to collect. Taking those ages into account, in 2024, those who retire at the FRA of 67 are eligible for a maximum monthly payment of $3,822. Conversely, individuals who opt for early retirement at age 62 can receive up to $2,710 and those who retire at 70 will receive up to $4,873,

At the beginning of the article you may have notice we have mentioned that only htosew who were born between the 1st and the 10th of every month will receive their benefits on this payment wave and that is because the timing of the benefits distribution also depends on the recipient’s birthdate. While those born early in the month will get their payments by July 10 while the others will have to wait a bit longer. According to the Social Security Administration (SSA) schedule, payments for those born between the 11th and the 20th will have their payments sent out on July 17 and those born between the 21st and the 31st will get them on July 24.

Potential Updates to Social Security

As we all know, Social Security is not a static program, and least of all now, when the SSA is projected to encounter a funding crisis by the mid-2030s. Many seniors have already expressed concerns that their monthly benefits are insufficient to keep pace with current inflation rates, and the news are not indicating it will get any easier soon.

Alex Beene, a financial literacy instructor in Tennessee, highlighted this issue, stating, “You can sense the frustration among seniors when you walk into a grocery store. Some of the items most affected by inflation have been everyday purchases they weren’t expecting to see steep price increases on during retirement.”

In response to these concerns, Senator Kirsten Gillibrand, a Democrat from New York, has proposed the Boosting Benefits and COLAs for Seniors Act. This bill aims to increase monthly payments for seniors if it becomes law. As she explained, “Social Security is a lifeline for older adults. For many, it’s their main source of income. But benefits aren’t keeping pace with rising costs, leaving many older Americans struggling to afford the basics—particularly health care.”

The proposed legislation seeks to adjust the annual cost of living adjustment (COLA) for Social Security by considering the expenses associated with senior health care. It proposes using the consumer price index (CPI) for the elderly rather than the CPI for urban wage earners and clerical workers, which is the current standard.

Professor Beene still advises Social Security recipients to manage their expectations regarding the potential increase in payments. “This could be a blessing and a curse, in some ways. The promise of higher health care costs being a greater factor is certainly music to the ears of many seniors who are struggling with those increased prices. At the same point, it will be interesting to see how other costs of living are factored with the adjusted model. Hopefully, those other expenses will have the same generosity in calculation that health care is supposed to have.”

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2024-07-10 12:00:51

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