Many Social Security beneficiaries will start receiving their monthly benefits for April from this week onwards, with others having to wait a week or two longer.
The Social Security Administration (SSA) usually pays benefits based on the birth date of beneficiaries.
In April 2024, people born between 1 and 10 of the month get paid on the 10th. People born between 11 and 20 get paid on the 17th, and those born between 21 and 31 get paid on the 24th.
An exception applies to beneficiaries receiving Social Security benefits since before May 1997 or those who receive both Social Security and supplemental security income (SSI). For these, Social Security income is paid on the 3rd of every month.
“Wait times to speak to a representative are typically shorter in the morning, later in the week, and later in the month. Our automated telephone services are available 24 hours a day and do not require you to wait to speak with a representative,” the agency said.
For individuals retiring at age 62 this year, the maximum benefit paid is $2,710. For those retiring at 70 years of age in 2024, the maximum benefit is $4,873.
Despite COLA increases, the increases may not be enough for some retirees to offset high inflation.
The Senior Citizens League has warned that over two-thirds of older American citizens said their monthly budget for essentials like food, housing, and medication was 10 percent higher than a year ago, far exceeding the 3.2 percent COLA hike.
Hike in 2025, Tax Issues
Another COLA hike may happen in 2025.“The January CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers) came in at 2.9 percent. That’s higher than the inflation trends indicated last month based on December CPI-W data.
“Based on this trend, The Senior Citizens League (TSCL) is adjusting the long-term forecast COLA to 1.75 percent in 2025,” the group said in a February press release.
COLA estimates keep changing according to new inflation data and can go up or down throughout the year.
The group’s 2024 Senior Survey found that 38 percent of respondents expressed worries that 2024 COLA adjustments will fall short of inflation.
For instance, the 8.7 percent COLA hike in 2023 raised average payments to $1,827 a month instead of $1,681, potentially pushing some beneficiaries into a taxable category.
A survey conducted by The Senior Citizens League found that as high as 26 percent of the respondents who received Social Security for over three years reported paying taxes on a portion of these benefits for the first ever time during the 2022 tax year.
In an Oct. 12 press release, the organization pointed out that the income thresholds of Social Security subject to taxation have never been adjusted for inflation.
Social Security increases can “bump more retirees into the thresholds that trigger the tax on their Social Security benefits and can increase the portion of benefits that may be taxable,” the group said.
Meanwhile, Social Security payments may be reduced in the next decade due to funding issues.
If Social Security outlays were limited to what is payable from annual tax revenues, payments would be roughly 23 percent smaller than originally scheduled by 2034, CBO calculated.
