This week, two important Social Security payment rounds are set for retired and disabled Americans.
Payments are directly deposited into bank accounts by the Social Security Administration (SSA), reaching millions of recipients monthly.
On Tuesday, October 1, the first payments will be issued to those receiving Supplemental Security Income (SSI). This aid supports adults and children with disabilities or blindness, as well as individuals 65 and older who might not have enough retirement income.
Following that, on Thursday, October 3, payments will go out to Social Security beneficiaries who began claiming benefits prior to May 1997.
If your payment doesn’t show up as scheduled, the SSA advises waiting three business days before reaching out to them.
As of January 2024, the average monthly retirement benefit stands at $1,907. This amount is determined by an individual’s top 35 earning years and the age they start claiming benefits, with adjustments for inflation included.
The SSA clarifies that maximum benefits vary by retirement age. For instance, retiring at full retirement age in 2024 allows for a maximum benefit of $3,822, while retiring at 62 sets the limit at $2,710, and at 70, the maximum climbs to $4,873.
Stay tuned for an upcoming announcement about the annual benefit adjustment, known as the Cost of Living Adjustment (COLA).
Mary Johnson, an independent analyst of Social Security and Medicare policy, predicts the COLA will increase by 2.5 percent. While this might seem modest for fixed-income recipients like seniors, it’s worth noting that historically, about half of COLA increases have fallen short of that year’s inflation rate, so this isn’t necessarily bad news.
The official COLA update will be revealed on October 10.