Every month, the Social Security Administration (SSA) sends millions of Social Security payments to American seniors, totaling approximately $1.5 trillion in benefits distributed throughout the year. The second round of payments will resume this week, starting tomorrow, March 13th.
As of December 2023, the Social Security Administration (SSA) claimed that most of their benefits go to retired workers, totaling around $95.5 billion in annual payments and a monthly average payment of about $1,905. As a result, the Social Security retirement program is essential for a large portion of seniors in the country.
This week, seniors who claimed Social Security benefits after May 1997 and whose birth dates ranged between the 1st and 10th will get an average payment of $1,900. However, Social Security payments are not the same for all seniors as it depends on their full retirement age (FRA), Social Security contributions, and working history.
For instance, retired workers who apply by the age of 62 will receive a monthly payment of $3,822, while those who apply after the age of 70 will receive the maximum payment of $4,873. It is important to always check with an attorney or the Social Security Administration (SSA) to understand your circumstances and make sure you get your monthly benefits as expected.
Why are Social Security payments important for seniors?
The retirement program was created by the federal government to provide a continuing income for retired workers aged 65 or older. Since its foundation in 1935, it has provided millions of retired workers with a secure source of income in their retirement lives. According to the U.S. Census Bureau survey, excluding the small percentage of the highest income group, most retirees have modest incomes.
Additionally, the survey indicates that the majority of older Americans from low-income families have very little, if any, pension income. As stated by the SSA, most retired households in the lowest income distribution did not receive any pension income, as approximately 1 in every 4 of these households lived on less than $20,000 in 2015, with roughly half living on $50,000 or less.
March Social Security payments confirmed for seniors
Social Security payments are typically made on the second, third, or fourth Wednesday of each month, depending on the beneficiary’s birth date. This month, SSI recipients and retirees who claimed benefits before May 1997 received them on March 1st. Seniors’ upcoming payment dates are listed below:
- March 13th: The birth date falls between the 1st and 10th
- March 20th: The birth date falls between the 11th and 20th
- March 27th: The birth date falls between the 21st and 31st
Extra money in Social Security payments for seniors
Seniors should also keep in mind that Social Security payments in the coming months will arrive with an additional 3.2% increase on their monthly checks due to the cost of living adjustment (COLA), which was implemented in the last quarter of 2023. Besides helping seniors pay for all of their essential daily expenses, such as housing, food, healthcare, entertainment, transportation, taxes, and prospective debt payments, the additional funds will enable them to keep up with inflation.
How might raising the retirement age affect Social Security benefits?
Raising the retirement age has multiple consequences for Social Security payments. While it has the potential to improve the program’s solvency and raise benefits for some, it may result in decreased benefits and financial hardship for others, particularly low-income senior earners and those with physically demanding jobs.
Marty Burbank, an estate planning specialist, voiced alarm about the potential rise in the retirement age, which could affect eligibility for programs such as Social Security and Medicare. This could affect the timing and quantity of benefits an individual can get, which is critical when developing comprehensive estate and retirement plans. This issue is especially important in Medi-Cal Planning and Veterans’ Benefits Services.