The final round of July Social Security payments is set to go out tomorrow, with some recipients receiving up to $5,108, depending on their income level and retirement age. This payment is part of the staggered monthly distribution system, based on retirees’ birth dates.
When Does the Check Arrive?
Social Security payments typically begin on the second Wednesday of each month, with subsequent payments being distributed weekly. For July, the third round of payments will be going out tomorrow, July 23, for retirees born on or after the 21st of any month.
The first round of July’s payments went out on July 9, for those born on or before the 10th, while the second round was issued on July 16, for those born between the 11th and 20th.
Who is Eligible for Social Security?
To qualify for Social Security payments, individuals must be at least 62 years old. Retirees can begin collecting benefits at age 62, but the amount they receive each month depends on several factors, including the age at which they retire and their earnings history.
How Can I Maximize My Check?
The amount a person receives from Social Security is heavily influenced by their retirement age, how much they have paid into the system, and for how long they have been contributing.
If a person retires at age 62, they can expect to receive up to $2,831 per month.
If they wait until age 67 (full retirement age), the monthly payment increases to $4,018.
By delaying retirement until age 70, a retiree can receive up to $5,108 per month.
To get a personalized estimate of how much they might receive, beneficiaries can use the SSA’s online calculator.
How is Social Security Financed?
Social Security is primarily funded through a payroll tax paid by both employers and employees. However, the program is facing significant financial challenges. Due to a growing number of retirees and a shrinking number of workers paying into the system, analysts predict that Social Security payments will start shrinking as early as 2034 unless Congress takes action to fix the issue.
Overpayments and Reductions
This month, the Social Security Administration (SSA) started recouping nearly $72 billion in improper payments. Overpayments typically occur when beneficiaries fail to report a change in their income, or when the SSA makes an error in calculating benefits. Those who have received overpayments can expect their monthly payments to be reduced by about half starting on July 24. Payments will remain reduced until the overpayment is fully repaid.
To ensure you are receiving the correct payment, it is crucial to keep your personal information up to date with the SSA.
