The Social Security Administration (SSA) provides monthly payments to nearly 70 million beneficiaries, including retirees, disabled individuals, and survivors. While the system is best known for its retirement benefits, knowing how payments are calculated and when they are distributed can be confusing. Let’s break it all down so you know what to expect.
Programs
If you’ve worked and paid Social Security taxes, you’ve been earning credits toward your retirement benefits. To qualify, you need 40 credits, which is about 10 years of work. Once you reach this threshold, the amount you receive depends on:
- How many years you work beyond the minimum requirement.
- The age at which you start claiming benefits.
In contrast, Disability Insurance (SSDI) and Supplemental Security Income (SSI) have different qualification criteria. SSDI is based on your work history before becoming disabled, while SSI is strictly for individuals with limited income and resources. Unlike retirement benefits, SSI has income limits—once you exceed a certain threshold, you may lose eligibility.
Amount
Your retirement benefit amount depends on the age you start claiming:
- Age 62: You can start receiving benefits, but your monthly payments will be 30% lower than if you wait until the full retirement age.
- Age 67: This is the full retirement age for most people. Claiming at this point means you receive your standard benefit amount.
- Age 70: Your benefits increase every year you delay claiming, but they stop growing at age 70.
Payments in 2024
| Claiming Age | Maximum Monthly Benefit |
|---|---|
| 62 years old | $2,710 |
| 67 years old | $3,822 |
| 70 years old | $5,108 |
The average Social Security retirement payment is around $2,000 per month, but those who delay claiming can maximize their benefits.
Payment Schedule
Your Social Security benefits are distributed based on your birthdate:
| Birthdate Range | Payment Date |
|---|---|
| 1st – 10th | Second Wednesday of the month |
| 11th – 20th | Third Wednesday of the month |
| 21st – 31st | Fourth Wednesday of the month |
Special Cases
- If you claimed benefits before May 1997, you receive payments on the 3rd of the month.
- If you receive both Social Security & SSI, your SSI is paid on the 1st and your Social Security is paid on the 3rd.
Financial Security
While Social Security is a helpful financial tool, it should not be your only source of income in retirement. To stay financially secure, consider:
- Building additional income streams through investments, pensions, or rental properties.
- Creating a budget to manage expenses effectively.
- Speaking with a financial advisor to look into low-risk investment options to grow your retirement savings.
Final Thoughts
Knowing how Social Security works and when payments are distributed can help you plan better for retirement. While claiming benefits early may seem tempting, delaying benefits can lead to higher monthly payments. Most importantly, make sure you have a financial strategy beyond Social Security to ensure a comfortable and secure retirement.
FAQs
When will I receive my Social Security payment?
Payments are based on birthdate: 1-10 (2nd Wed), 11-20 (3rd Wed), 21-31 (4th Wed).
Can I work while receiving Social Security?
Yes, but earning too much may reduce your benefits before full retirement age.
What is the maximum Social Security benefit in 2024?
$5,108 per month if you claim at age 70.
What happens if I claim Social Security at 62?
Your benefits are permanently reduced by about 30%.
Can I increase my Social Security benefits?
Yes, by working longer and delaying claims until age 70.
