Social Security beneficiaries should pay attention to their bank account, as today the Social Security Administration (SSA) will send benefits for retired workers and recipients from the Social Security Disability Insurance (SSDI) program. If you were born between the 11th and 20th, you will receive a Social Security check before the day ends.
On average, the SSA will deliver a Social Security check of $1,900 for retired workers and SSDI beneficiaries will receive $1,500. Even though these checks include the 3.2% increase from cost of living adjustment (COLA), each beneficiary’s circumstances are unique, allowing some of them to get maximum monthly payments of up to $4,873 and $3,822 for retired workers and disabled persons, respectively.
After today’s payments are done, beneficiaries born between the 21st and 31st will receive their final Social Security check of the month next week, on Wednesday, March 27th. Once the Social Security Administration (SSA) has delivered all March benefits, payments will begin on April 1st for Supplemental Security Income (SSI) beneficiaries and retired individuals who claimed Social Security benefits before May 1997.
Social Security check payment methodology
The SSA provides a yearly Social Security payment schedule so beneficiaries from all programs have a clear understanding of when they will receive their Social Security check each month. Since the Social Security Administration (SSA) manages four different programs, including the retirement program, survivor benefits, disability benefits, and Supplemental Security Income (SSI), knowing the Social Security payment methodology is crucial for beneficiaries to plan their financial budget.
SSI recipients and retired workers
- 1st day of the month: SSI recipients receive their Social Security check on this day unless it falls on a holiday or weekend. In this case, payments will be sent on the preceding business day.
- 3rd day of the month: Retired workers who claimed benefits before May 1997 receive their Social Security check on this day unless it falls on a holiday or weekend. In this case, payments will be sent on the preceding business day.
As some payments come on a holiday or weekend, the Social Security Administration (SSA) may have to deliver double payments in certain months. In other words, if the third of the month comes on a weekend, the retired workers’ benefits will most likely be sent on the first of the month, which is also the day SSI beneficiaries receive their Social Security check.
Retired workers and SSDI recipients
Once the SSA pays SSI and retired workers, they have another payment schedule methodology for retired workers who claimed benefits after May 1997 and SSDI recipients. These Social Security payments are sent in three rounds, on the second, third, and fourth Wednesday of each month, according to the beneficiary’s birth date, as follows:
- 2nd Wednesday: Beneficiaries with birth dates between the 1st and 10th.
- 3rd Wednesday: Beneficiaries with birth dates between the 11th and 20th.
- 4th Wednesday: Beneficiaries with birth dates between the 21st and 31st.
Social Security check impact on American beneficiaries
Social Security benefits are calculated based on workers’ earnings, with higher earnings resulting in larger benefits. These benefits are progressive, meaning that workers with lower wages receive a larger share of their past earnings. For example, a low-wage worker retiring at age 65 in 2023 receives $14,824 per year, which replaces half of their previous earnings. High-wage workers receive $32,345, which replaces around 30% of their previous earnings.
Many firms have switched from traditional defined-benefit pension plans to defined-contribution plans, leaving Social Security as the sole source of guaranteed retirement income for the majority of employees. Additionally, each Social Security check benefit rises with inflation, preventing poverty as people age, unlike most private pensions and annuities, which do not adapt to inflation.