When it comes to managing your life as a retiree, you’ll need to keep abreast of the yearly Social Security tweaks and adjust your budget accordingly. This includes not only the amount you'll receive but also when benefit payments are distributed. This schedule varies from person to person.
To help you keep track of your Social Security benefits, Investopedia has put together a Social Security benefits payment schedule for 2024, which can be found below.
Key Takeaways
- Depending on the day you were born, Social Security retirement, disability, and survivor benefits will be distributed on either the second, third, or fourth Wednesday of each month.
- Beneficiaries who received benefits before May 1997 will instead have their payments distributed on the third of each month.
- Approximately 66 million Americans received a 3.2% cost-of-living adjustment (COLA) to benefits in January 2024. Beginning in January 2024, more than 72.5 million beneficiaries will receive an additional 2.5% COLA increase.
- The 2025 COLA adjustment will raise the totalaverage benefit to $1,976 per month for all retirees and to $3,089 per month for couples. The average disability benefit payment will increase to $1,580 per month.
- In 2025, themaximum amount of earnings subject to the Social Security tax will increase from $168,600 to $176,100.
How Social Security Payments Work
Social Security, officially known as the Old Age, Survivors, and Disability Insurance (OASDI) program, provides monthly monetary benefits to qualified workers and their dependents (if any). Employees, employers, and the self-employed finance these benefits with their Social Security taxes, which are then put into two Social Security trust funds. Eligibility and benefit amounts are based on an individual’s contributions to Social Security and work history (or that of their spouse/parent(s)).
The Social Security Administration (SSA) offers three types of Social Security benefits.
Retirement
This is the best-known variety of Social Security benefits. It's available to individuals age 62 or older who have worked a minimum of 10 years. The amount someone receives in retirement benefits is dependent on their pre-retirement salary and the age at which they begin collecting benefits.
A retiree’s spouse (whether currently married or divorced) may also be eligible for Social Security retirement benefits, regardless of whether or not they have paid into the program.
Disability
People who are unable to work due to a disability are eligible for Social Security Disability Insurance (SSDI) benefits as long as they have worked a certain number of years beforehand. The amount of work required varies based on an individual’s age, while the monthly payment depends on their pre-disability salary.
Like retirement benefits, SSDI also may be available for a beneficiary’s spouse (whether current or former).
Survivor
Survivor benefits are typically available for:
- Widows and widowers
- Qualifying divorced spouses
- Children of a deceased worker/retiree
The benefit amount varies based on the worker’s salary and age at death, in addition to the survivor’s age and relation to the deceased individual. An additional death benefit is also available: it's a one-time payment of $255 that is distributed to the spouse or children of a deceased retiree.
Supplemental Security Income
There is a fourth kind of benefit made available by the SSA, though it isn’t part of Social Security. Financed by general tax revenues, Supplemental Security Income (SSI) is a needs-based program designed to help those with limited income and resources who are unable to earn sufficient wages on their own.
Adults and children with disabilities, as well as individuals age 65 or older, are eligible to receive SSI benefits. The amount beneficiaries are given depends on federal and state laws, which take into account their place of residence, who lives with them, and their other sources of income. No work credits are required, and those with enough work history may be eligible for both SSI and Social Security benefits.
SSA
Managing retirement benefits is an ongoing part of retired life. It’s important to understand what you’re entitled to, stay up to date on program changes, and make certain that the SSA has your current information.
Social Security Payment Schedule for 2024
Among Americans age 65 or older, 40% reside in households where Social Security benefits account for at least half of their income, while 1 in 7 depend on their monthly payment for at least 90% of their income. As such, it’s important for retirees to be aware of when they will receive their benefits. While this is especially crucial to the 0.7% of beneficiaries who need to be on the lookout for a physical check each month, the remaining 99.3% still ought to know when their Social Security income is being directly deposited into their account to ensure that they aren’t spending more money than they actually have.
Social Security retirement, disability, and survivor benefits are distributed on one of three Wednesdays each month for beneficiaries who began receiving benefits after May 1997. When a beneficiary receives their payments depends on their birth date, as described below:
- If your birthday is between the 1st and the 10th, you will receive your Social Security payments on the second Wednesday of each month.
- If your birthday is between the 11th and the 20th, you will receive your Social Security payments on the third Wednesday of each month.
- If your birthday is between the 21st and the 31st, you will receive your Social Security payments on the fourth Wednesday of each month.
SSI benefit payments follow a different schedule. Specifically, SSI benefits are distributed on the first of each month. Should the first of the month fall on a weekend, then the new payment date will be the last Friday of the prior month.
Exceptions to the Payment Schedule
There are several cases where the default payment schedule isn’t followed, and Social Security benefits are paid at a different time. The current exceptions include:
- Payment to children or spouses who receive benefits based on someone else’s work record will be paid on the same day as that primary beneficiary.
- Benefits to individuals who also receive SSI will be paid on the 1st of each month.
- Individuals whose payment date falls on a federal holiday or weekend will be paid on the weekday immediately prior.
In addition, Social Security payments will automatically be issued on the 3rd of each month to individuals who:
- Filed for benefits before May 1, 1997
- Also receive Supplemental Security Income payments
- Have their Medicare premiums paid for by the state where they live
- Live in a foreign country
Getting Your Payments
The SSA began phasing out paper checks roughly a decade ago. Social Security benefits are now issued almost entirely electronically. Individuals receiving benefits have a few digital options.
First, Social Security benefits can be distributed via direct deposit. Individuals can visit their local branch or contact their Social Security office to sign up. Individuals should be prepared to present their Social Security number, their financial institution’s routing number, their account number, and their account type (checking or savings).
Social Security benefits can also be awarded via a Direct Express card. A Direct Express card is a debit card that can be used to access benefits without the use of a bank account. Monthly benefits are deposited directly to the card, and individuals can use the card to make purchases. The Direct Express card can also be used at ATMs, banks, or credit unions to get cash.
Late Social Security Payments
For several reasons, Social Security payments may sometimes be late. Those reasons can include but are not limited to:
- Delays for initial Social Security benefits
- Process slowdowns at the SSA
- Updates to your personal information, such as your mailing address
- Changes to your payment information, such as a new checking account
- Inclement or severe weather
If your Social Security payment is late, contact the SSA immediately. For delays potentially caused by changes in your personal information, contact your local SSA office.
The SSA periodically issues notices of delays that collectively impact a region or a number of individuals. Be sure to check SSA's media channels.
Workers who have reached full retirement age or older for the entire year are not subject to a limit on earnings.
Cost-of-Living Adjustments
Social Security benefit rates rise in tandem with the cost of living, as measured by the U.S. Department of Labor’s Consumer Price Index (CPI-W). This index is boosted by increased inflation rates that raise the cost of goods and services. To offset these costs and ensure that the purchasing power of Social Security benefits isn’t eroded by inflation, the SSA will issue what’s known as a cost-of-living adjustment (COLA).
According to a formula outlined in the Social Security Act, COLAs are based on increases in the CPI-W. Specifically, a COLA is equal to the percentage increase in the CPI-W from the average for the current year’s third quarter to the average for Q3 of the prior year in which a COLA was enacted. Increases must be rounded to the nearest tenth of 1%. Should there be no increase, or if the end result rounds to zero, no COLA is issued for that year.
COLA Changes in 2024
The SSA announced its annual changes to the Social Security program for 2024 on Oct. 12, 2023. More than 66 million Americans received a 3.2.% COLA increase to their Social Security benefits beginning in January 2024. This was lower than the 8.7% cost-of-living adjustment from 2023, which is primarily due to lower inflation. The increase was 5.9% in 2022 and before that, COLA averaged just 1.65% per year over the previous 10 years while inflation remained low.
The 2024 adjustment increased benefits by $59 for the average retired worker, according to estimates released by the SSA, raising average total benefits to $1,907 per month. Couples experienced an averagebenefits increase of $94 to $3,033 per month.
Disability benefit average payments increased by $48 to $1,537 per month.Disabled workers with a spouse and one or more children experienced an average$84 increase to $2,720 per month. Widows and widowers found that their averagebenefits increased by $55 to $1,773 per month. Widowed mothers with a minimum of two children received an average$113 increase to $3,653.
In addition to the COLA, several other major Social Security changes went into effect:
- The maximum amount of earnings subject to the Social Security tax, also known as the taxable maximum, increased to $168,600 from $160,200.
- The earnings limit for workers receiving benefits who are younger than their full retirement age increased to $22,320 from $21,240. Recipientswho go above this limit have $1 of benefits deducted for every $2 earned above $22,320 in 2024.
- The earnings limit for still-employed beneficiaries who reach their full retirement age increased to $59,520 from $56,520. In 2024, recipientswho go above this limit will have $1 of benefits deducted for every $3 earned above $59,520 until the month they reach their full retirement age.
- The credit-earning threshold increased by $90 to $1,730 in earnings per Social Security credit for 2024.
The retirement age for Social Security ranges between 66 and 67. For those born in 1960 or later, it's 67.
What Beneficiaries Can Expect in 2025
In October 2024, the SSA announced its annual changes for 2025. More than 72.5 million Americans will receive a 2.5.% COLA increase to their benefits beginning in January 2025. This is again a lower amount than the previous year due to a lower level of inflation.
The SSA estimates that the average retirement benefit will increase by $50 per month. This will raise the average retirement benefit to $1,976 per month in 2025. The average retirement benefit for couples will increase to $3,089 per month. Average benefits for widows and widowers will increase to $1,832 per month. Widowed mothers with a minimum of two children will receive an average monthly benefit of $3,761 in 2025.
Disability benefit payments will also increase with the 2025 COLA. The average benefit for all disabled workers in 2025 will rise to $1,580 per month.Monthly benefits for disabled workers with a spouse and one or more children will increase to $2,826.
Other changes in 2025 will include:
- The maximum amount of earnings subject to the Social Security tax will increase from $168,600 to $176,100.
- The earnings limit for workers receiving benefits who are younger than their full retirement age in 2025 will increase from $22,320 to $23,400. Recipients will have $1 of benefits deducted for every $2 earned above this limit.
- The earnings limit for still-employed beneficiaries who reach their full retirement age in 2025 will increase from $59,520 to $62,160. Recipientswill have $1 of benefits deducted for every $3 earned above this limit until the month they reach their full retirement age.
What Is the Social Security Payout Schedule for 2024?
Social Security benefits will be paid on either the second, third, or fourth Wednesday of each month, depending on the day of the month when you were born:
- Those with birthdays between the 1st and the 10th will receive benefits on the second Wednesday of the month.
- Those with birthdays between the 11th and the 20th will receive benefits on the third Wednesday of the month.
- Those with birthdays between the 21st and the 31st will receive benefits on the fourth Wednesday of the month.
What Is the 2024 Cost-of-Living Adjustment (COLA) for Social Security?
Beginning in January 2024, a 3.2% COLA increased Social Security benefits for more than 66 million Americans. The drop from the 8.7% COLA in 2023 reflects a lowering of inflation in the U.S.
How Much Will Social Security Increase in 2025?
Social Security benefit payments will increase by 2.5% beginning in January 2025. This is a lower COLA than in 2024 because inflation has decreased over 2024. This will raise the average benefit payment by $50. Disability and SSI payments will also receive a 2.5% cost-of-living adjustment.
When Are Payments Made for Supplemental Security Income (SSI)?
Individuals who were born before May 1997—or who receive both Social Security and SSI—will receive a payment for Social Security on the third day of each month. If the third of the month is a weekend, payments will be issued on the first Friday of that month. Payments for SSI (if applicable) will arrive on the first day of each month.
Does Social Security Pay a Month Ahead or a Month Behind?
Social Security benefits are paid in the month following the month in which they are due. For example, Social Security benefits awarded in January are paid in February.
The Bottom Line
When it comes to Social Security, there are many rules to be mindful of. Even minor mistakes can have a noticeable impact on your life in retirement. Accidentally overspending on your weekly budget because you thought your monthly Social Security benefits had already been deposited shouldn’t be something you have to worry about. Mark the payment dates for the year in your calendar to make sure you know when your Social Security benefits will be arriving.
