With the arrival of September, many retirees in the United States are awaiting their Social Security benefits with excitement. In fact, some of them will receive as much as $3822 this month alone. Although not all recipients will be able to receive such an amount at once, it is important for retirees to know what factors determine how much they should expect so that they can plan ahead and possibly increase their future benefits.
Who receives Social Security payments in September?
According to certain procedures established by the Social Security Administration (SSA), retirees, disabled people as well as children left behind after the death of a worker receive social security payments which are paid out based on a schedule. In September these payments will go out on the 2nd, 3rd or 4th Wednesday of that month depending on when you were born:
- Birth Dates 1-10: Payment on the second Wednesday of September (September 13).
- Birth Dates 11-20: Payment on the third Wednesday of September (September 20).
- Birth Dates 21-31: Payment on the fourth Wednesday of September (September 27).
Those who started receiving benefits before May 1997, or who are receiving both Social Security and Supplemental Security Income (SSI), will receive their payments on September 1.
How much can retirees receive in September?
As of 2024, the average Social Security payment for retirees hovers around $1,827 while people who fit some conditions can receive as much as $3,822 which is the highest. For individuals who have had a life-time high income, decided to retire at 70 and earned enough work credits, this is a maximum benefit limit.
In order to get maximum payment from Social Security in retirement, one must have been employed for at least 35 years and paid Social Security taxes on maximum taxable earnings throughout their life until retirement age plus delay claiming any benefits until after reaching the age of 70. On the other hand if you begin withdrawal from funds any time before that then you will be given a lesser amount but if you delay until full retirement age (which is either 66 or67 depending on your birth year) or beyond it your monthly income increases.
Factors that determine your Social Security payment
There are factures you need to consider in order to help you determine how much you can get from the SSA as a retiree. These includes:
- Lifetime earnings: Social Security payments are based on the average of a retiree’s 35 highest-earning years. Higher lifetime earnings generally result in higher benefits.
- Age at retirement: The age at which you start claiming your benefits,the payment amount. Those who begin receiving benefits at age 62 receive lower payments than those who wait until full retirement age or age 70.
- Work credits: To qualify for Social Security benefits, a retiree must have accumulated at least 40 work credits, equivalent to about 10 years of employment. Additional work credits beyond this threshold can lead to higher benefit payments.
- Cost of Living Adjustments (COLA): The SSA adjusts benefits each year based on inflation. In 2024, for example, beneficiaries saw an 8.7% increase due to inflation, the largest increase in decades.
Who Qualifies for the Maximum Social Security Payment?
To qualify for the maximum monthly payment of $3,822, retirees must meet several stringent criteria:
- High lifetime earnings: Only those who have earned at or above the Social Security taxable maximum for at least 35 years can qualify. For 2024, this taxable maximum is $160,200. Each year, the SSA sets a limit on the amount of earnings that can be taxed for Social Security purposes, and individuals who meet or exceed this amount throughout their careers are well-positioned for higher benefits.
- Delayed retirement credits: Retirees who delay claiming benefits beyond their full retirement age receive delayed retirement credits, which increase their payments by up to 8% for each year they wait, up until age 70.
- Full work credits: Achieving the maximum payment also requires the accumulation of 40 work credits over the course of one’s career. This is typically achieved by working at least 10 years in jobs that pay into Social Security.
When can you expect your payment?
Retirees should expect to receive their payments on the designated Wednesday based on their birth dates by retirees. Most of the time payments are directly deposited into the beneficiary’s bank account or sent using a prepaid ATM card so as to provide easy and safe access to money.
For people who have just filed for benefits or those waiting for their first payment, it is important that they check the SSA’s website or get in touch with the local Social Security office to get more information about their payment schedule and eligibility status.
