As we welcome in spooky season, beneficiaries of the Old-Age, Disability and Supplementary Support Income (SSI) Social Security funds can expect a new round of payments to be mailed. The Social Security Administration (SSA) is in charge of sending millions of payments each month. Many beneficiaries of Social Security rely on this income to live off of each month. Some beneficiaries can expect over $4,000 in payments this month.
Social Security payments increases will be announced next week
As the 2024 year comes to an end, beneficiaries are waiting on news for the new cost-of-living adjustment (COLA) statistic. This adjustment will determine by how much your current Social Security payments will be increased by. COLA is set according to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This year, the expected increase is 2.5% with the official news being announced on the 10th October.
In other news, Social Security increases have also been discussed recently in Congress. A new proposed bill titled the Social Security Fairness Act. The bill which is soon to be voted on by congress will counter the effects of the current Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) laws. These laws can decrease the payments of some beneficiaries. The new bill is intended to protect the payments received by beneficiaries.
Social Security payments increase the longer you wait to claim
Currently, the average beneficiary from the Old-Age fund receives $1,900 a month. The youngest age to claim for benefits is 62 where you can expect up to $2,710 per month. The longer you wait to claim for Social Security, the higher your monthly payouts will be. Currently, the highest you can claim for is $4,873 per month provided that you wait until you are 70 years old.
If you receive Disability payments, the maximum amount you can claim is $3,822 per month. Survivors with two children can claim $3,953 per month while the average SSI benefiters receive $698 per month. SSI benefits are often received by Americans who receive both Disability and/or Old-Age payments. SSI are need-based payments which are provided to those who have little or no income or resources.
Schedule for October payments
As always, SSI payments were made on the first of this month. If you claimed Social Security benefits before May 1997, you can expect your payments to be distributed today. However, if you claimed for Social Security after May 1997, your payments will be made in staggered batches according to your birth date. Dates are also adjusted if the payment date falls on a weekend. Last month, September 1st fell on a weekend and SSI benefits for September were made on the 31st August instead.
For beneficiaries who claimed benefits after May 1997 which are not SSI benefits, you can expect your payments to be made according to the following scheduel:
2nd Wednesday (October 9th)- Beneficiary’s birth date: 1st–10th
3rd Wednesday (October 16th)- Beneficiary’s birth date: 11th–20th
4th Wednesday (October 23rd)- Beneficiary’s birth date: 21st–31st
Congress is considering a variety of reformations to Social Security in addition to the Social Security Fairness Act. The Old-Age fund is expected to be depleted by 2033. This depletion is urging law makers to either raise Social Security taxes or to reduce payment costs now to further the longevity of the fund. If the fund was to hit Day Zero and be depleted, beneficiaries would still receive payments but at a reduction of over 20%.
The future of Social Security is sure to be at the forefront of the next presidential term. With high costs of living and uncertainty about Social Security’s longevity, public concerns is going to continue to keep Social Security a major topic within Congress.
