The first batch of August’s Social Security payments, which can be as high as $4,873 for those with the highest earnings who retire at age 70, will be sent out to the first group of retirees in five days.
Here’s what you need to know about this month’s Social Security payments.
Eligibility
U.S. citizens become eligible to receive Social Security payments starting at age 62.
What is Social Security?
The Social Security Act was signed into law in 1935 by President Franklin D. Roosevelt, establishing the Social Security Administration (SSA) to manage it. This program provides monthly payments to retirees to replace or supplement their income after they stop working.
Payment Schedule
Social Security payments are typically disbursed starting on the second Wednesday of each month, with additional payments following in the subsequent weeks. The timing of payments depends on the retiree’s birth date.
- Retirees born between the 1st and 10th of a month will receive their payments on August 14.
- Beneficiaries born between the 11th and 20th will get their checks on August 21.
- Retirees born on or after the 21st will receive their payments on August 28.
Maximizing Your Benefits
The amount recipients receive is influenced by the age at which they retire, how much they have paid into Social Security, and the duration of their contributions.
- Retiring at age 62 allows beneficiaries to receive up to $2,710 per month.
- Delaying retirement until age 70 can increase payments to as much as $4,873 per month.
Beneficiaries can use the SSA’s calculator to get a personalized estimate of their expected monthly benefits.
Financing Social Security
Social Security is funded through a payroll tax shared by employers and employees.
Without intervention from Congress, Social Security payment amounts may decrease. Analysts predict that due to an increasing number of retirees and a shrinking workforce, the SSA may not be able to provide full payments by 2034.
