As October approaches, Social Security beneficiaries can expect the Social Security Administration (SSA) to send out a new round of benefit payments to be released soon. Beneficiaries can also prepare for the new cost-of-living adjustment (COLA) statistic to be announced on October 10th. This announcement to indicate how much benefit payments will increase from January of 2025.
Social Security statistics for September 2024
As of 2023, 58 and a half million Americans receive benefits from the Social Security Old-Age and Survivors program while eight and a half million receive benefits from the Disability Insurance program with many beneficiaries receiving from both. In addition, many beneficiaries also receive an income from the Supplemental Security Income (SSI) program.
The SSI program is a need-based program for adults, children, and disabled people who have little to no access to resources or income. SSI eligibility is consistently reassessed as changes in income circumstance can mean that you no longer receive SSI whereas the Old-Age program pays out each month regardless of your changing income and resource status.
October payments can be as much as $4,873
In October, Old-Age program beneficiaries who are over the age of 70 can receive up to $4,873 in monthly payments. The older you are to claim social security benefits, the higher your monthly payouts will be. The average beneficiary receives $1,900 dollars per month in payments. The youngest age to claim benefits is 62 years old.
The average Survivor fund beneficiary receives $1,505 per month. Average Disability benefits amount to $1,537 per month while the average SSI benefit is $698 per month. Survivors with two children can expect payments of $3,653 per month while the maximum Disability payment you can qualify for is $3,822 per month. Couples filing for SSI payments can receive $1,415 per month.
Your payment for October will depend on your birthdate
Social Security payments are mailed depending on your birthdate and the date for when you claimed benefits. Those who receive SSI benefits will always receive this payment on the first of each month. If you claimed Social Security benefits before May 1997, you will always receive your payments on the third of each month. If you claimed after May 1997, payments are staggered according to the following birthdates:
October 9, for those who were born between the 1st and the 10th
October 16, for those who were born between the 1st and the 10th
October 23, for those who were born between the 1st and the 10th
Social Security is an essential government program
Millions of Americans rely on Social Security to live each month. The program is an imperative part of government benefits and is supported by most people regardless of political alignment. While the SSA cautions that Social Security does not provide a sufficient amount to be fully reliant on and that beneficiaries need to have planned for other sources of income, the reality is that most beneficiaries only receive an income from these payments.
The expected COLA increase for 2025 is projected to be around 2.5%. This would be the lowest COLA since the 2020 COVID-19 pandemic. The lower COLA statistic is an indication that the economy is beginning to recover from the mass inflation which hit the nation as a result of the global shut down. Cost of living continues to be on the rise however, and many beneficiaries remain concerned about keeping up with the increasing prices.
Current working adults should remember to always plan ahead for retirement or disability incurrence. Having a saving and investment plan in imperative to have a stress free retirement but to also have income saved in the case where one can no longer work due to unforeseen circumstances. When building up your savings, investors suggest to first start working on an emergency fund before turning to more aggressive investment strategies.
