Social Security is one of the most important programs in the United States, and it has been at risk for some time now. A few months ago, Social Security trustees warned that trust funds could run out as early as 2034. Meanwhile. Legislators do not agree in Washington to carry out strategies and legislation to save it.
Through it all, this federal program remains a vital source of income for millions of retired and disabled Americans. For the year 2024, several changes and benefit increases have been implemented that are important to know about. Additionally, the payment schedule is essential so that beneficiaries can plan their finances. Here is a detailed guide to Social Security benefits and specific payment dates for August 2024, based on the information provided.
Payment Dates in August 2024: Will benefits increase soon?
For August 2024, Social Security payment dates are organized by the beneficiary’s day of birth. Below are the specific dates:
- Wednesday, August 14: For those born between the 1st and 10th of the month.
- Wednesday, August 21st: For those born between the 11th and 20th of the month.
- Wednesday, August 28: For those born between the 21st and 31st of the month.
Benefit Increases by 2025: COLA Forecasts
The year 2025 will bring several significant increases in Social Security benefits, reflecting the cost of living adjustment (COLA) that is applied annually.
Although we still do not know how much the COLA increase will be for next year, for now beneficiaries can enjoy the 3.2% increase that was granted for the year 2024.
Here are the maximum payment amounts depending on the type of benefits:
- Maximum Monthly Disability and Retirement Benefit: This has increased to $3,822 per month. This increase will be reflected from January 2024.
- Supplemental Security Income (SSI): The maximum federal monthly payment for an eligible individual has increased to $943, while for an eligible couple (individual with an eligible spouse) it has increased to $1,415. For an essential person, the maximum payment is $472.
- Maximum Benefit from Delaying Retirement: If a person waits until age 70 to retire, they can receive a maximum monthly benefit of $4,873 in 2024. By comparison, if they retire at full retirement age (FRA) this year, the maximum benefit would be $3,822. For those who choose to retire at age 62, the earliest possible age to receive Social Security benefits, the maximum monthly benefit would be just $2,710.
Retirement Age Penalties and Rewards
The Social Security program also includes certain penalties and rewards based on the age at which you decide to begin receiving benefits:
- Penalty for Early Retirement: Those who begin receiving benefits before reaching full retirement age may face reductions in their monthly payments. This is because Social Security applies a penalty for each month the benefit is received before full retirement age.
- Credits for Delayed Retirement: On the other hand, if a beneficiary decides to delay claiming benefits beyond full retirement age, they receive additional credits that increase their monthly benefit amount. However, these credits only apply up to age 70. After this age, there are no additional benefits for delaying retirement.