Chicago, IL – Without the monthly benefits provided by Social Security, millions of retirees, survivors, and disabled individuals would struggle to keep up with rising costs and financial obligations. The upcoming Social Security checks are crucial for many beneficiaries, especially seniors who have claimed benefits since May 1997. These payments include a cost-of-living adjustment (COLA), with the average payout expected to be around $1,900, ensuring recipients can meet their basic needs.
As of September 2023, the Social Security Administration reported that 67 million people were receiving monthly benefits. The majority of these beneficiaries were retirees and their families, totaling over 52 million individuals. Additionally, the SSA projected that more than 180 million individuals would be working in Social Security-covered employment and contributing to the system in 2024.
When calculating Social Security benefits, several factors are taken into consideration by the Social Security Administration, such as the full retirement age (FRA), work history, and contributions made to the system. For retirees who choose to claim benefits before reaching their full retirement age, their monthly payments are reduced by a certain percentage, reflecting their early retirement decision.
Eligible retirees are entitled to increases in benefits beginning at age 62, even if they choose to delay receiving benefits until a later age. These adjustments are made annually based on changes in the cost of living as measured by the Consumer Price Index (CPI), ensuring that beneficiaries can keep pace with inflation.
For retirees who opt to delay retirement until age 70, incremental increases in their Social Security benefits are granted, up until the age of 70. However, any further delays in retirement beyond that age do not result in additional increases in monthly benefits. Furthermore, retirees who work for the government while receiving benefits may have a different formula applied to calculate their average monthly indexed earnings, especially if they receive a pension from a non-Social Security covered position.
In confirming the payment schedule for this month, Social Security has announced that all eligible retirees who claimed benefits after May 1997 will receive their monthly payments starting on May 8th. Subsequent payments will be made on May 15th and May 22nd, based on beneficiaries’ birth dates. This schedule ensures that recipients can anticipate and plan for their Social Security payments accordingly.