Social Security payment for July $4,873 to retirees in hours?

The first round of Social Security payments for July will be sent out on Wednesday. Some seniors might get up to $4,873, based on their retirement age and how much they earned during their working years. If you were born between the 1st and 10th of any month and started getting benefits after May 1997, you will receive your payment on Wednesday, July 10.

Payment Amounts of Social Security payment:

Most people will get less than the maximum amount. The payment amount depends on two things: how much money you earned over your career and the age you retired. The key retirement ages are:

In 2024, if you retire at 67, you can get up to $3,822 each month. If you retire at 62, you can get up to $2,710. If you retire at 70, you can get up to $4,873.

Timing of Payments:

We mentioned that only people born between the 1st and 10th of each month will get their payments on this date. This is because the timing of the payments also depends on your birthdate:

Concerns About Funding:

Social Security is not a fixed program and faces challenges. The Social Security Administration (SSA) might run into funding problems by the mid-2030s. Many seniors already worry that their monthly payments are insufficient to keep up with inflation.

Impact:

Alex Beene, a financial literacy teacher in Tennessee, talked about this problem. He said, “You can see the frustration among seniors at grocery stores. The prices of everyday items have increased a lot, which they didn’t expect during retirement.”

Proposed Solutions:

Senator Kirsten Gillibrand from New York has proposed a new law called the Boosting Benefits and COLAs for Seniors Act. This bill aims to increase monthly payments for seniors. She said, “Social Security is a lifeline for older adults. For many, it’s their main source of income. But benefits aren’t keeping up with rising costs, leaving many older Americans struggling to afford the basics—especially health care.”

Adjusting for Costs:

The bill suggests changing the annual cost of living adjustment (COLA) for Social Security by considering the expenses of senior health care. It proposes using the consumer price index (CPI) for the elderly instead of the CPI for urban wage earners and clerical workers, which is the current standard.

Expectations:

Professor Beene advises seniors to manage their expectations about the possible payment increase. “This could be both good and bad. Higher health care costs being considered is good news for many seniors struggling with those prices. But it will be interesting to see how other living costs are considered with the new model. Hopefully, other expenses will also be generously calculated like health care.”