Social Security Payment of $4,873 to Go Out This Week
The third and final round of this month’s social security payments is set to go out this week—and could be worth up to $4,873 for eligible retirees.
The largest pay-outs will be sent to the biggest income earners who waited until 70 before retiring.
Two previous payments were issued to other beneficiaries earlier this month and now the remaining recipients (those born on or after the 21st of any given month) will receive their pay-outs on Wednesday, March 27, although the payment can take up to three days to arrive.
The last of this month’s social security payments are due to be issued on Wednesday. Pictured: A Social Security card sits alongside checks from the U.S. Treasury in this archive image taken on October 14,…
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Not everyone will receive the largest possible payment of $4,873 though.
The amount each person will receive depends on a string of factors, such as how many years they paid into the program, how much they deposited, and how old they were when they retired.
For example, the maximum benefit somebody who retired at 67 could receive is $3,822 per month, according to the Social Security Administration. While those who retired at 62 can expect a maximum of $2,710 each month.
For retirement beneficiaries, the average amount comes in at $1,906. Those receiving Social Security Disability Insurance (SSDI) are likely to receive less than that, with the average amount standing at $1,537.
The checks are distributed on various days depending on the birthdates of the beneficiaries or, in some cases, when they retired. Anyone who retired before 1997 got the payment on March 1, while those who had birthdays between the 1st and 10th saw their money issued on March 13. This week’s payment, on March 27, is for those who were born between the 21st and 31st of a given month.
This year’s payments have seen a boost thanks to a cost-of-living adjustment. Recipients will receive a 3.2% increase, compared to the monthly payments last year. Although the raise is significantly lower than the 8.7 percent adjustment seniors saw last year, it is hoped that it will help make up for the impact of inflation on beneficiaries’ purchasing power.
Jonathan Price, the national retirement practice leader at employee benefits consulting firm Segal, previously told Newsweek: “Whether the annual COLA [cost-of-living adjustment] is appropriate for a specific retiree to ensure equal purchasing power as the prior year is highly specific to the life situation of the individual retiree, both in terms of expenses and other sources of income.”
The Social Security Administration has an online benefits calculator that Americans can use to estimate their Social Security benefits. Workers can also play around with different retirement ages on the calculator to see how each scenario is likely to affect their future retirement benefits.
The future of Social Security is set to become a key issue in the presidential election later this year, as President Joe Biden and the presumptive Republican nominee Donald Trump prepare to battle for another term in the White House.
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
