Social Security update: $4,873 payment goes out this week

Social Security benefits are paid each month to tens of millions of Americans — with some recipients set to receive nearly $5,000.

In 2024, an average of almost 68 million Americans per month will receive some form of Social Security benefit, whether it be retirement, disability or survivor benefits. The Social Security Administration (SSA) expects to pay out about $1.5 trillion throughout the year.

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However, due to the large number of recipients and the large amount of money being distributed, not every claimant is paid on the same date each month. For most pensioners, payments are almost always made on Wednesdays.

This coming Wednesday, June 26, retirees who were born between the 21st and 31st of each month of the year will receive their monthly check from the SSA. All other recipients, including those with different birthdays, Supplemental Security Income (SSI) recipients, those who have claimed since before 1997, and those who live in another country, have already been paid throughout June.

If you haven’t received your funds by the due date, the SSA recommends waiting three business days before contacting them.

Not every Social Security recipient will receive the maximum monthly amount of $4,873. The average monthly pension benefit paid to claimants in January 2024 was $1,907. Social Security payments are calculated using the 35 highest-earning years of your career and then adjusted for inflation.

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On its website, the SSA explains: “The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2024, your maximum benefit would be $3,822. However, if you retire retired at age 62 in 2024, your maximum benefit would be $2,710 if you retired at age 70 in 2024, your maximum benefit would be $4,873.

Social Security benefits are up 3.2 percent for all claimants this year. The cost of living adjustment (COLA) adjusts the amount paid each year in line with inflation and is in place to help benefits keep up with rising costs.

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The COLA is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during the third quarter of the year: July, August and September. The Congressional Budget Office’s current forecast stands at 2.5 percent — but the final COLA rate won’t be announced until October of this year.

Current projections are far less than some of the increases recipients have enjoyed in recent years. In 2023, the COLA increased benefits by 8.7 percent due to high inflation rates caused by the coronavirus pandemic. It was the largest single increase in benefit amounts in 40 years.