Many of us have started dreaming of the day we can finally retire and spend our remaining years with loved ones and doing what we love. Unfortunately, not all older citizens look forward to retiring. In fact, many people are now dreading that moment due to financial hardship. Luckily, there will be a cash rain for one lucky group in three days, who could be receiving a whopping $1,955 on average. Find out who will be receiving payments, and why these payments matter to older citizens.
These monthly payments matter to all beneficiaries in need
Financial hardship is a harsh reality, and nearly 27 million older American households are facing it. According to the Washington State Standard, the increasing cost of living and strained retirement savings are primary factors behind the struggle. The impact is heartbreaking, as several older citizens cannot afford essentials such as housing and necessary care.
Over 50% of workers attribute their struggle to obtain a comfortable retirement to inflation. It has also increased the cost of retirement health care. According to Investopedia, tariffs increased the cost of living and have resulted in severe stock market unpredictability, causing some 401(k) savings to fall by tens of thousands of dollars.
That is why Social Security benefits are vital for retirement. It is a significant source of income for most people over age 65 and is designed to alleviate poverty for millions of older citizens. These benefits can protect you from outliving your retirement savings and provide additional security for married couples by offering financial aid for surviving spouses.
This group of citizens will receive a payment in three days
Before you apply for Social Security, keep in mind that the SSA stipulates that you must meet certain criteria to qualify for Social Security benefits. Remember that the SSA has made this major change to Social Security when considering applying.
Criteria to qualify for Social Security benefits
- Retirement benefits
- Must be at least 62 years old
- You’ve worked and paid Social Security taxes for at least 10 years, earning 40 work credits
- Disability benefits
- You have a disability or are blind, which prevents you from working
- You still need enough work credits earned through work and paying Social Security taxes
- Family benefits
- Family members can also qualify for benefits based on a worker’s record, even if they haven’t worked themselves
- Includes spouses, ex-spouses, children, survivors
The SSA distributes benefits based on the beneficiaries’ birthdates as well as the age at which they began collecting benefits. According to the Social Security payment schedule, only this group of Social Security beneficiaries will be receiving their payment in three days, on Wednesday, October 8:
- Beneficiaries with birthdates between the 21st and 31st of any given month
This will be the second payment of the month, since, remember, there was a first one for SSI beneficiaries on October 1.
Not everyone will be receiving the same amount of cash
Not everyone will receive the same amount of cash. According to the Social Security monthly statistical snapshot, the average retirement benefit is $1,955.48. The average survivor and disability benefits are $1,575.30 and $1,445.72, respectively.
If you have substantial retirement savings or additional income, you could choose to delay retirement and claim benefits to boost your monthly payments later in life. Keep in mind that you can only delay retirement until age 70. This decision will only impact your monthly benefit amount, and not your overall lifetime benefits.
The SSA has predicted years ago that the life expectancy will gradually increase and even surpass the age of 65. This is why the SSA has changed the retirement age, as this will prevent the program’s funds from drying up in the near future. Remember, the age at which you choose to retire must reflect your own overall health and life expectancy. For those already living the retirement dream who will be receiving their Social Security benefits this week, enjoy and spend wisely!
Disclaimer: This content is informational only and does not supersede or replace the SSA’s or IRS’s own publications and notices. Always verify any specific dates and amounts by following the direct links in our article to SSA.gov or IRS.gov, or by consulting your local SSA field office or tax professional.
