The Social Security Administration (SSA) is responsible for supporting approximately 70 million beneficiaries, the large majority of whom are retirees. In addition, the SSA also supports those with very little to no income through the Supplementary Security Income (SSI) monthly payments, as well as supporting those who are unable to work due to a disability through monthly Disability payments. Next month, an important announcement will be made for beneficiaries regarding the future of their payments.
The SSA protects the most vulnerable members of society
The SSA is a critical social support program that is often the sole source of income for many beneficiaries, keeping them out of destitution. For many Americans, Social Security is the only retirement plan in place for beneficiaries to receive an income from once they stop working. However, the SSA recommends that to live a financially free life in retirement, you should have additional sources of income to your SSA benefits.
Unlike retirement benefits, which are paid out to you regardless of other sources of income you may have in your retirement, SSI and Disability benefits are dependent on your state. Because SSI is reserved for individuals who have little to no income or resources, if this changes, it means you no longer qualify to receive these payments. Similarly, Disability payments support disabled individuals because they are unable to work due to their disability. However, if you can find other sources of employment, you may not qualify to receive Disability anymore.
Important date for SSA beneficiaries next month
One important fact about SSA retirement benefits is that once you choose to claim your benefits, your payment amount is set and cannot be raised. For SSI and Disability payments, your payment amount differs according to a variety of factors and can be subject to change. It is for this reason that, for retirees, it is critical to plan carefully when you choose to claim your retirement benefits, as the SSA rewards beneficiaries with higher monthly payments should you choose to delay for as long as possible.
However, there is one exception regarding how retirement benefits are increased. Next month, the Social Security Administration will announce the new cost-of-living adjustment (COLA) statistic. This statistic is applied to all SSA beneficiary payments and raises beneficiaries’ monthly benefits in order to ensure that benefits continue to have the same buying power despite inflation.
The new COLA statistic will be announced on October 15 and is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) third quarter of the current year.
“We’re likely to see a relatively historically normal COLA, maybe in the range of 2.6 to 2.7” percent, says Indivar Dutta-Gupta, a visiting fellow with the National Academy of Social Insurance to AARP.
Two payment dates for these recipients
While SSA beneficiaries anticipate the new COLA statistic, SSI beneficiaries must not forget that they will receive two payments this month from the SSA. If you are a beneficiary who only receives SSI benefits from the administration, you are paid on the first of each month. However, September 1 is Labor Day, meaning the September benefits are set to be advanced.
SSI-only beneficiaries will therefore receive their September benefits on August 29. The payment schedule will revert to normal in October; however, October will also see beneficiaries have their November payment advanced due to November 1 falling on a weekend. While the SSA rarely deviates from its set payment schedule to ensure that beneficiaries can accurately plan their expenses around an anticipated payment date, payment dates will be advanced if they fall on a holiday or weekend.
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.
