Retirees are set to receive their first Social Security payment of July, known as round one, within a week. This payment, which can amount to a maximum of $4,555, will be disbursed according to the schedule provided by the Social Security Administration.
The initial installment will be sent out on July 12 to recipients who were born between the first and 10th day of any given month. Since the 12th falls on the second Wednesday of July, monthly payments are consistently distributed on the second, third, and fourth Wednesdays throughout the month.
Every retiree is entitled to one paycheck per month, with the specific date of receipt determined by the day they were born. Individuals born between the first and 10th day of the month receive the first batch of checks, while those born between the 11th and 20th receive the second. Those born after the 21st receive the third and final batch.
The maximum payment amount for each beneficiary
depends on their retirement age. Retirees who choose to retire at 62 can receive monthly installments of up to $2,572. Individuals who retire at 67 are eligible for a maximum benefit of $3,627. For those who delay retirement until the age of 70, the highest possible monthly payment is $4,555, as stated by the Social Security Administration (SSA).
It’s important to note that not all beneficiaries receive the maximum payment. The payment amount is also influenced by the duration of their Social Security contributions and the total funds accumulated during those years.
Social Security recipients receive an annual cost-of-living adjustment based on the previous year’s consumer price index for urban wage earners and clerical workers. However, the upcoming adjustment for the next year is expected to be significantly lower, with a mere 2.7% increase. In 2023, retirees experienced a substantial increase of 8.7%.
If Congress fails to secure funding for the Social Security program before the trust runs out, recipients may face reduced payments in the future. The program’s trust is projected to be depleted by 2033.
Discussions about the future of Social Security have been ongoing in Congress for several years. Experts have cautioned that without appropriate action, the program could become financially insolvent within a decade.
Currently, the retirement age in the United States is 67. However, House Republicans recently proposed gradually raising the full retirement age to 69 by 2033. Nonetheless, individuals planning to retire soon still have the option to choose early retirement at 62 or delay it until as late as 70.