In just a few hours, millions of retirees in the US will get a new Social Security payment worth more than $4,000. The upcoming direct payment will hit the bank accounts of all retirees who claimed their first Social Security benefit after May 1997 and were born between the 1st and the 10th. However, not all retirees will get this maximum payment, as it depends on several factors. Check here for all the other allowable maximum payments that retirees can apply for.
On average, the Social Security Administration (SSA) provides retirees with $1,900 in monthly benefits, and depending on their full retirement age (FRA), working history, and contributions made to the system, some retired workers could receive up to $4,873. For example, if you claimed your first Social Security payment before reaching the full retirement age, which is now 67, you may get up to $2,710, depending on your work history and contributions.
However, if they decide to wait until reaching the full retirement age (FRA), retirees could expect monthly checks up to $3,822, and if they delay claiming benefits until reaching 70, monthly benefits can reach the maximum benefit of $4,873. It is important to note that to qualify for the maximum Social Security payment, retirees must also meet additional SSA requirements and have made Social Security contributions under the taxable maximum earnings.
Social Security payment dates for retirees for this month
Aside from a retirement budget, you should manage your monthly finances to ensure you can make ends meet. As a result, being up to speed on the Social Security payment schedule is critical for all retirees, as they will know exactly when they will receive their money. The payment schedule for this year specifies that pensioners will get four sets of payments throughout the month. Here is a thorough summary of the next payments in May; however, please refer to the official payment schedule to note the following payment dates on your calendar.
Social Security payment schedule for retirees in May
According to the Social Security Administration schedule, all eligible retirees will be paid based on the date they claimed Social Security benefits and their date of birth, as follows:
Monthly benefits for retirees who claimed benefits before May 1997
- On May 3rd: Payment is scheduled to be mailed today
Monthly benefits for retirees who claimed benefits after May 1997
- On May 8th (Wednesday), retired workers whose birth dates range between the 1st and the 10th
- On May 15th (Wednesday), retired workers whose birth dates range between the 11th and 20th
- On May 22nd (Wednesday), retired workers whose birth dates range between the 21st and the 31st
Why do retirees have concerns about the Social Security payment system?
According to a study by the Employees Benefit Research Institute and Greenwald Research, Americans’ trust in their retirement income has not increased since the global financial crisis. Still, there are encouraging signals, as wages are rising faster than inflation. The study indicated that the latter concern stems from the expectation held by both workers and retirees to rely on three sources of income in their golden years: Social Security, employer-sponsored retirement savings programs, and individual retirement savings or investments.
While 88% of workers expect Social Security will be a source of retirement income, almost all of today’s retirees, 91%, say they depend on those benefit checks. Social Security payment changes could be imminent since the program’s trust funds will run out within the next ten years unless Congress acts to prevent benefit reductions of at least 20%. In addition, Medicare’s trust fund, which provides Part A hospital insurance, is expected to deplete even sooner.
Read More: $4,000+ check will hit bank accounts now