checks up to $4,873 before Thanksgiving

The Social Security program, established in 1935 under President Franklin D. Roosevelt, remains a cornerstone of financial support for millions of Americans. Its primary goal is to provide economic stability to retirees, individuals with disabilities, and their families. This November, benefit payments will be issued according to the standard schedule, ensuring all recipients receive their funds before Thanksgiving.

Payment distribution is primarily based on the beneficiary’s birth date, with a schedule that organizes payments into different weeks of the month. For example, those born between the 1st and the 10th of their birth month received their payments on the second Wednesday of November, which this year was November 13. Individuals born between the 11th and the 20th will get their checks on November 20, while those celebrating birthdays from the 21st to the 31st will receive their funds on November 27, just one day before Thanksgiving.

How to receive Social Security payments

Since 2013, Social Security payments are no longer sent via paper checks except in rare cases. Beneficiaries now have two main options for receiving their payments:

• Direct deposit into a bank account: This is the most popular and secure method, ensuring that payments are deposited directly into the beneficiary’s account, avoiding delays or the risk of lost payments.
• Direct Express debit card: This prepaid card is ideal for those without a bank account. It allows beneficiaries to access their funds, make purchases, pay bills, or withdraw cash without needing to open a checking account.

The transition to electronic payments began in 2011 as part of an effort to reduce costs and minimize the environmental impact of paper-based transactions. This system is not only more efficient but also safer for containers, eliminating the risk of losing physical checks.

How Social Security payments are calculated

The monthly amount each Social Security beneficiary receives is determined by three key factors: the worker’s earnings history, the type of benefit they qualify for, and the age at which they choose to start receiving benefits.

The age at which you begin collecting benefits has a significant impact on your monthly payment. For instance, if you delay retirement until age 70, you could receive up to $4,873 per month in 2024. On the other hand, retiring at your full retirement age (FRA) will result in a slightly lower, but still substantial, benefit amount.

The FRA varies depending on the year you were born:

• Born between 1943 and 1954: FRA is 66 years.
• Born between 1955 and 1959: FRA is 66 years plus additional months (increasing by two months for each year, reaching 66 years and 10 months for those born in 1959).
• Born in 1960 or later: FRA is 67 years.

If you choose to retire before your FRA, such as at age 62, you will receive a reduced monthly benefit, with a maximum of $2,710 in 2024. However, reaching your FRA could qualify you for up to $3,822 per month that same year.

What about individuals with low incomes or disabilities?

The Social Security program isn’t just for retirees. Individuals with limited incomes or disabilities may also qualify for additional assistance through Supplemental Security Income (SSI). This separate program ensures that the most vulnerable individuals have access to a basic level of income.

It’s important to note that SSI follows a different payment schedule than traditional Social Security benefits, and the amounts vary based on each recipient’s specific needs.

Planning your retirement with Social Security

Social Security is not intended to cover all retirement expenses but serves as a vital pillar for ensuring financial stability during retirement. Proper planning for when to start receiving benefits can significantly impact the monthly amount you receive.

If you are able to delay retirement, your benefits will increase considerably, providing greater long-term financial security. Conversely, opting for early retirement will result in lower payments throughout your lifetime.

The Social Security program continues to be a critical resource for millions of Americansoffering a safety net for retirees and individuals with disabilities. With payments scheduled to be distributed this November, it’s essential for beneficiaries to understand how the payment calendar works and explore the available options for receiving their funds.

Take the time to review your FRA, consider your long-term financial needs, and choose the payment method that best suits you. No matter your decision, Social Security is designed to provide financial support and stability during the times you need it most.