Starting August 21, 2024, certain Social Security beneficiaries will begin receiving their monthly payments according to the schedule established by the Social Security Administration (SSA), so if you haven’t received your money, it may land this week in your bank account.
The SSA makes at least 5 payments every month:
- 1st of each month: Supplemental Security Income (SSI) benefits
- 3rd of each month: benefits for those who receive both Social Security and SSI (Social Security is paid on the 3rd and SSI on the 1st, with the rest of the beneficiaries in the same category).
- Second, third, and fourth Wednesday of each month: Social Security and Social Security Disability Insurance (SSDI) retirement payments, based on your dates of birth.
Social Security payments from August 21 to 30, 2024
Beneficiaries from August 21 to 31:
Those beneficiaries who were born between the 21st and 31st of any month will receive their payments on the fourth Wednesday of August, which in this case falls on August 28, 2024. This group includes both retirement beneficiaries and those who receive the Insurance Social Security Disability Insurance (SSDI). It is important to note that payments are distributed in three stages throughout the month:
- Those born between the 1st and the 10th receive their payment on the second Wednesday of the month.
- Those born between the 11th and 20th receive it on the third Wednesday of the month.
- Those born between the 21st and 31st receive it on the fourth Wednesday of the month.
Advance Payments on August 30: It Is Not Extra Money
On August 30, 2024, beneficiaries of the Supplemental Security Income (SSI) program will receive their payment for the month of September. This payment is made in advance because September 1st falls on a weekend, specifically a Sunday. It is common SSA practice to advance SSI payments when the regular payment date falls on a non-business day, such as weekends or holidays, thus ensuring that beneficiaries receive their funds without delay.
Maximum Social Security Benefit Amount in 2024
The maximum amount of benefits a beneficiary can receive monthly under the Social Security program varies depending on several factors, including whether it is retirement or disability (SSDI), as well as the age at which the beneficiary decides to begin receiving benefits.
Social Security Disability Insurance (SSDI):
In 2024, the maximum monthly SSDI payment is $3,822, which reflects an increase compared to the maximum of $3,627 in 2023. However, it is important to note that not all beneficiaries receive this maximum amount. In fact, the average SSDI benefit is closer to $1,489.26 per month.
The SSA determines the specific amount each beneficiary receives based on their average earnings over their working life before becoming disabled. These calculations take into account annual cost of living adjustments (COLA) and other economic variables that affect the final amount.
Retirement Benefits:
Furthermore, if you want to know what the maximum retirement benefit amounts are, well, they vary significantly depending on the age at which the beneficiary decides to begin receiving them.
In 2024, the maximum amounts are as we explain below:
- If a beneficiary decides to begin receiving benefits at age 62, the maximum monthly amount is $2,710.
- If you’re taking this decision, and you are in the position to wait until your full retirement age, which ranges from 65 to 67 depending on your date of birth, the maximum is $3,822 per month.
- Those who decide to wait until age 70 can receive up to $4,873 per month.
Consider that the full retirement age depends on the beneficiary’s date of birth. For example, for those born in 1960 or later, the full age is 67 years. This is the age at which full benefits can be received, without any reduction for having started collecting earlier.
This is how the SSA Determine the Maximum Benefit Amount
The maximum amount of Social Security benefits is not only influenced by the age at which a beneficiary begins receiving them, but also by the earnings accumulated over their working life. The SSA looks at a worker’s 35 years of highest earnings to determine their monthly benefit amount.
For example, in 2024, if a worker wants to receive the maximum amount of Social Security in retirement, they will need to have earned at least $168,800 annually during their working career. This is an increase of $8,400 compared to the previous year’s requirement. The maximum taxable amount of income changes each year, meaning this threshold could be different in the future when new workers retire.
Finally, here’s something really important to have in consideration: income above this annual limit is not subject to Social Security taxes and does not count toward the total benefit calculation. For example, 20 years ago, in 2003, the maximum taxable amount was $87,000, while in 2022 it was $147,000. These adjustments reflect SSA’s effort to adapt benefits to current economic conditions while maintaining the purchasing power of beneficiaries.