Social Security faces an uncertain future, raising concerns among Americans. According to a Gallup poll, 45% worry a great deal, while 29% worry a fair amount. Surprisingly, 34% not yet retired still bank on Social Security as a major retirement income source. The big question: What will Social Security realistically look like in the future, and should workers be concerned?
In 2024, over 71 million Americans receiving Social Security and Supplemental Security Income (SSI) money will see a 3.2 percent increase in their payments. The cost-of-living adjustment (COLA) of 3.2 percent will take effect from January 2024 for more than 66 million Social Security beneficiaries. Additionally, around 7.5 million SSI recipients can expect the enhanced payments to commence on December 29, 2023. It’s worth noting that some individuals are eligible for both Social Security and SSI benefits, and this adjustment seeks to provide financial support to a significant portion of the population.
What the Social Security System Will Look Like in the Near Future
The surplus of over $2.7 trillion in 2022 stems from Baby Boomers’ decades-long contributions. However, as this generation retires, benefit outlays surge, creating a precarious situation. Fewer payroll tax contributors per beneficiary exacerbate the financial strain on the system.
The Social Security Administration suggests that repealing the cap on annual income subject to Social Security taxes, without increasing benefits for high-income taxpayers, could address 73% of the long-term shortfall. But what does this mean for the average worker, and is it a sustainable solution?
The future of Social Security appears challenging, with the depletion of the OASI Trust Fund on the horizon. As benefit coverage decreases and uncertainties loom, workers face valid concerns about their retirement security. For those eyeing Social Security as a primary income source, the potential 23% reduction in benefits poses a significant threat. Understanding the impact on retirement plans is crucial for individuals navigating their financial future.
Social Security Payment Dates in December 2023
Social Security payments in December 2023 are going to be made following the SSA schedule, for now, with no extraordinary modifications on the horizon:
December 1: In general, you’ll be paid on Dec. 1 if:
You live outside the U.S.
You receive both SSI and Social Security benefits.
Your state pays your Medicare premiums.
You filed for Social Security benefits before 1997.
Also, Supplemental Security Income (SSI) payments are made on the first of each month.
December 13: If your birthday falls on any day from the first to the 10th of your birth month, you’ll get your Social Security payment on the second Wednesday in December.
December 20: If your birthday falls on any day from the 11th to the 20th of your birth month, you’ll get your Social Security payment on the third Wednesday in December.
December 27: If your birthday falls after the 20th of your birth month, you’ll get your Social Security payment on the fourth Wednesday in December.