This week, pensioners who receive Social Security who celebrate their birthdays from the 11th to the 20th are set to receive their payment for the month of October. The objective behind breaking the payments such that there is a time lag between the payments every month is to ensure that the payments are made to each of the many beneficiaries in a systematic manner. After the current week’s payment, there is still one more payment coming up on October 23, for those individuals who were born from 21 to 31 of any month.
Earlier in the month, persons born between the 1st and the 10th were paid their dues on October 9, and also these two groups of persons including SSI payslips or individuals who started their benefits a long time ago inform of payments before May 1997 received their payments earlier too.
What to Do If Your Payment Is Delayed
The Social Security Administration (SSA) recommends waiting three business days before contacting them if you do not receive your payment on the expected date. It’s important to note that weekends and holidays do not count as business days. This three-day window allows time for any potential delays in processing or transfer.
Understanding Your Social Security Benefits
The amount of Social Security retirement benefits varies based on factors like your age at the time of claiming and your earnings history. In 2024, the maximum benefit for individuals retiring at 70 is $4,873 per month, reflecting their earnings during their highest-paid years. However, if you choose to claim benefits as early as 62, the maximum drops to $2,710.
Upcoming Changes: Cost-of-Living Adjustment (COLA) for 2025
In October 2024, the Social Security Administration declared a 2.5% Cost-of-Living Adjustment (COLA) for the year 2025. This adjustment is lower than the historic 8.7% increase in 2023 which was meant to cushion the rapid rise in prices that was caused by the COVID-19 pandemic. The 2025 COLA however is a projection based on inflation data collected in the year 2024 which has dropped down to 2.3% as at September. The reason the increase in COTA for the year 2025 is smaller than the previous year’s increase is that there has been a decline in inflation.
Though this 2.5% COLA might seem small when measured against the 2023’s raised adjustment, it will nonetheless avail a substantial increase to the majority of beneficiaries. For instance, January 2025 could see a recipient who is currently paid $1,870 monthly receive an additional $46.80. Payment Increase for SSI recipients, however, would be effective at the end of December 2024.
Changes to Supplemental Security Income (SSI) Rules
Beyond the COLA adjustment, there have been additional updates that could impact SSI recipients. Notably, food assistance, such as groceries from food banks, will no longer be counted as income when calculating SSI eligibility. This change, which took effect in September 2024, could result in a $131 monthly increase for thousands of recipients. Similarly, new rules on rental assistance aim to ease the financial burden, potentially increasing benefits by around $132 per month for those who qualify.
Maximizing Your Benefits
If you have yet to create a My Social Security account, now would be the right moment. This portable online resource can allow you to obtain relevant materials such as your pending COLA notice, which will be ready in the first week of December. It is also important to consider opening this account for the reason that it will keep you updated on any alterations concerning your benefits and that you will not miss out on any government assistance that you should receive.
To retirees in the making, it is clear that the latest age to file a claim is age seventy as this results in the highest monthly benefit. However, other personal aspects have to be evaluated including health issues, financial exigencies as well as whether the claimant is working or not. A synthesis of these options would help you come up with the best time for you to access your benefits.
In conclusion, although the next adjustment to social security benefits may not be as high a percentage increase as that of last year, there still stands a good chance that the 2.5 per cent increase along with the changes enacted for SSI in America in recent times will benefit many American citizens. Following the above discussion, if you were previously denied SSI, it may now be advantageous to take a second look at your claims because of the current changes.
