The Social Security Administration (SSA) is an essential governmental assistance program for retirees, the disabled, survivors, and individuals with little to no income. The SSA is responsible for issuing payments to nearly 70 million individuals, with the overwhelming majority of these payments going to retirees. Last week, the administration announced some exciting news for Social Security beneficiaries with regards to their monthly payments.
How the SSA supports 70 million individuals
The SSA provides essential monthly payments to some of the most vulnerable citizens of the US. The SSA is responsible for the management and distribution of essential payments to their beneficiaries. Depending on what program you are part of, your monthly payments will differ in amount. The days beneficiaries are paid on also change depending on if you are part of one or multiple SSA programs.
As of the end of 2024, the average retired worker received just under $2,000 per month. Individuals on disability received an average payment of just over $1,500, while survivors also received just over $1,500 on average in monthly payments. One in 10 retired individuals over the age of 65 in the US receive Social Security payments, providing an essential lifeline of support for these retired workers. Social Security is often the only form of income these individuals have access to once they retire.
SSA announces retroactive payments for beneficiaries
Recently, the SSA announced that it is going to start distributing retroactive benefits to qualified beneficiaries with immediate effect. In addition, they will be increasing the monthly benefits from April for beneficiaries who have been affected by the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).
These governmental policies have, in the past, affected the monthly benefits paid out to certain SSA beneficiaries, particularly governmental employees. Now, due to the new Fairness Act, this will no longer be the case.
“Social Security’s aggressive schedule to start issuing retroactive payments in February and increase monthly benefit payments beginning in April supports President Trump’s priority to implement the Social Security Fairness Act as quickly as possible,” said Lee Dudek, Acting Commissioner of Social Security. “The agency’s original estimate of taking a year or more now will only apply to complex cases that cannot be processed by automation. The American people deserve to get their due benefits as quickly as possible.”
According to the official SSA website, retroactive payments will be paid out by the end of March for payments due for January and February of this year. If your monthly payment is expected to be adjusted, you will receive a notice from the SSA informing you of the change.
Payments also to increase for these groups
In addition to these beneficiaries, others may have their payments increased. In a survey undertaken by the National Academy of Social Insurance, beneficiaries have indicated that they feel the following individuals should receive higher monthly payments:
- Caregiving credits for parents with children under six
- Credit for retired workers who worked an intensive manual labor job
The support for the addition of this credit is to compensate for the fact that individuals who fall into these groups lose out on time when they could be earning money, and thus contribute to their retirement. Parents with children under six often have one parent stay home, who then cannot contribute to the retirement income. In addition, if you work an intensive manual labor job, you are often forced to retire early as your body cannot handle the strain anymore. This means you receive lower monthly benefits, as you claim your benefits early due to being forced into early retirement.
These credits would help bridge support for these individuals who receive lower benefits due to external circumstances.
