Thousands of U.S. citizens did not receive social security payments in March, with beneficiaries below the age of 64 losing out on the payments, according to the Social Security Administration (SSA).
Data from the SSA showed that 7.28 million individuals received social security payments in February 2024. This number fell by 13,578 beneficiaries or 0.18 percent to 7.27 million in March. Although the reason behind the drop in beneficiaries over a span of just a month remains unclear, it was observed that there was an increase in social security beneficiaries among the “aged” group and a decline in the “blind and disabled” group.
Analyzing by age, the number of beneficiaries in the under-18 and 18-64 categories declined. In contrast, beneficiary numbers rose among those aged 65 and older.
In addition, the children of the beneficiaries may qualify for monthly benefits if they are below the age of 18, or are in the age group of 18–19 and attend elementary or high school full-time, or suffer from disability irrespective of their age. Other relatives like a spouse or a dependent parent may also be eligible to receive payments.
As such, if social security recipients were to die and their children or other relatives were unqualified to receive the monthly benefits, there is bound to be a decline in the number of social security beneficiaries.
Meanwhile, Social Security funds are facing the prospect of getting exhausted. Back in 2019, the SSA estimated that the trust fund reserves of Social Security could be depleted by 2035. At that time, there would only be enough money on hand to pay 80 percent of scheduled benefits.
Some solutions have been suggested to tide over the situation. One involves delaying the age of retirement with full Social Security benefits from 67 to 70 years. The age to get early Social Security benefits, 62 years, could also be delayed, for instance, to 65.
“If we have sufficient growth in our economy, we’ll be able to meet our needs,” he said. “The other thing is we have to reduce spending in the non-defense discretionary line items by substantial amounts.” Such items include spending on the Department of Education.
Higher Social Security Payments
In 2024, social security beneficiaries saw their monthly payments rise by 3.2 percent due to the cost-of-living adjustment (COLA) hike made by the SSA. For the next year, monthly payments are predicted to rise once more, this time by a slightly lower 2.6 percent, according to estimates by The Senior Citizens League (SCL).Despite the increase, some say that it won’t be enough for beneficiaries to deal with the high prices of goods and services. “If the COLA increases by 2.6 percent, that will be an approximately $45 increase. What can you buy for that? Not much,” said Shannon Benton, a director who oversees COLA estimates at TSCL.
“From long-term dwindling purchasing power to heightened financial uncertainty, the trouble of seniors not being able to make ends meet remains a pressing concern,” she said, adding that the matter should be “a pressing concern of Congress as well.”
A November 2023 survey conducted by public interest law firm Atticus found that 62 percent of seniors receiving social security payments were unhappy about the 3.2 percent hike in 2023.
“Almost 60 percent of seniors already report financial difficulties with their current Social Security benefits,” it said. “70 percent of single seniors struggle financially with their existing Social Security income.”
“Nearly 40 percent of seniors plan to find work due to the modest COLA increase, with almost half of single seniors (47 percent) considering employment to supplement their income.”
Amid concerns of insufficient social security payments, there are ways people can boost their receipts. For instance, a person who is yet to retire can work longer to max out their social security payments.
“This is important to consider, because if you have not worked for 35 years, zeros will be factored in, lowering your overall payout.”
And even if a person has worked for 35 years, additional years in employment at higher pay can boost social security receipts.
“The additional earning can make a difference in future benefits only if it causes an earlier year’s lower earnings to drop off the record,” said Beth Lynch, CFP, financial adviser at Fort Pitt Capital Group in Pittsburgh.
Another way is to delay the benefit receipts. People can start receiving social security payments at the age of 62. However, if they wait to start cashing in until they’re 70, they stand to get a bigger check.
