Social Security checks will see an above-average increase for some beneficiaries this month, but they must meet specific criteria. The amount of monthly Social Security income varies widely in the U.S., and factors such as a person’s previous earnings and state of residence influence the amount received. As a result, some states are known for providing larger checks to retirees than others.
The increase in Social Security monthly benefits can differ from state to state due to the calculation process. Factors like lifetime earnings and the date of first application impact the actual benefit amount. Recent analysis suggests that some states may offer larger payouts due to higher median incomes and cost of living adjustments (COLA).
The states with the highest median monthly Social Security checks include New Jersey, Connecticut, New Hampshire, Washington, and Massachusetts. However, moving to one of these states does not guarantee a rise in Social Security payments. Monthly benefits are calculated based on an individual’s earnings history and the Social Security Administration’s (SSA) formula, not their state of residence.
As individuals age, planning for retirement becomes crucial. Social Security checks can play a significant role, but advanced planning is essential. Here are three strategies to consider for maximizing your Social Security benefits:
1.
Work for at least 35 years: The SSA calculates benefits using the highest 35 years of inflation-adjusted earnings. Fewer than 35 years of earnings can reduce your benefit amount. Working beyond 35 years can also increase your benefits by replacing lower-earning years with higher-earning ones.
2. Maximize your earnings: The income on which you pay Social Security taxes throughout your career affects your benefit amount. Higher earnings typically result in higher benefits, provided you remain below the maximum taxable earnings limit.
3. Choose the optimal age to claim benefits: The age at which you begin receiving benefits significantly impacts your monthly checks. Claiming benefits before your full retirement age (FRA) can reduce your payments, while delaying benefits beyond your FRA can increase them, with the maximum benefit achieved at age 70.
Consider your financial situation and life expectancy when deciding when to claim benefits. Millions of Social Security beneficiaries will have their payments skipped this month because of a calendar quirk. Specifically, recipients will not receive checks in September because payments are typically sent on the first of the month.
However, because September 1 fell on a Sunday, recipients got their benefits early, on August 30. The next round of payments won’t come until October 1. “Obviously, any time there’s disruption to someone’s expected benefits payment, it triggers fear among recipients, but this one is quite minor and has more to do with the calendar,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, stated.
“Since the next payments won’t go out until October 1, this means SSI recipients technically won’t get a check in September, but there is no disruption to the amount of funds they receive.”
More than 7 million people depend on Social Security’s SSI benefits every month, with some recipients earning as much as $943.
Social Security check distribution quirks
Everyone else who earns Social Security benefits will still get their checks on the normal schedule this month.
That schedule is dependent on birth dates. On September 11, people born between the 1st and the 10th of the month receive their payments. On September 18, those born between the 11th and the 20th get their checks, and those born between the 21st and the 31st receive their payments on September 25.
Kevin Thompson, a finance expert and founder and CEO of 9i Capital Group, referred to the schedule skip as a “quirk” but emphasized that it should not impact beneficiaries financially. “It is really no issue since the payment should have actually been received earlier than normally anticipated,” Thompson said. “So, in essence, it is not truly a skipped payment but a double payment in the month of August.” Payments will continue to go out normally for the remainder of the year.
The SSA also announced recently that physical signatures would no longer be required on more than 30 forms for benefits applications. Instead, digital signatures will be accepted on these forms, and 13 forms will no longer require signatures at all. “The SSA is trying to feel its way into this digital world without compromising security,” Thompson added.
“The need for digital signatures should speed up the processing times and automate processes that should have been automated years ago.” Previously, forms that required a physical signature made up 90 percent of the most commonly used forms in field offices, with roughly 14 million signed forms submitted annually. “Across forms that Americans use most often, we’re eliminating as many pain points as possible, from helping people sign at the click of a button to reducing the need to drive or mail something in whenever possible,” Social Security Commissioner Martin O’Malley said in a statement. “This means faster and more error-free processing and better service for our customers, who deserve a government that meets their needs efficiently and effectively.”
Seniors who qualify for a monthly payment of up to $4,873 will receive their new check or direct income from Social Security tomorrow, provided they meet certain requirements.
It is important to note that two groups of beneficiaries will not receive this payment, as they have already received their third check. This is because they rely simultaneously on the Supplemental Security Income (SSI) program and began receiving their retirement benefits before May 1997. September 11 is approaching, and thousands of seniors are eagerly awaiting their next payment.
To receive this significant income, certain requirements must be met:
– Have worked in jobs covered by the Social Security Administration
– Have paid sufficient payroll taxes on those jobs
– Have accumulated at least 35 years of work, although in some cases more may be required
– Must have earned the maximum taxable amount (the taxable benefit base) during those years of work and applied for Social Security by age 70
– Must have been approved by the SSA and continue to comply with all SSA regulations without any noncompliance
Although these are the requirements necessary to receive the maximum payment of $4,873, it is also important to meet specific conditions to receive a check on September 11. Specifically, you must be born between the 1st and 10th of any month, from January through December, to qualify for this payment on that date. Some retirees who are eligible to receive Social Security may not be eligible for the September 11 payment.
In that case, they must wait until September 18 to get their next check. Those whose payday is September 18 must have been born between the 11th and 20th of any month, provided they did not receive a payment on September 3. The last payment of the month is scheduled for September 25, for those born between the 21st and 31st.
The month or year of birth does not affect payment dates, but it does determine when the benefit is received. The remaining three payments average $1,919. However, those who meet all the requirements can receive much higher checks, up to $4,873, on the dates of September 18 and 25.
The Social Security Administration (SSA) processes millions of payments each month for beneficiaries of its programs. Most retirees depend on these payments as their primary source of income. It’s crucial for seniors to be aware of their specific payment dates and eligibility requirements to ensure they receive their benefits timely and without issues.
