According to The US SUN, A rare scheduling event is leading some Social Security beneficiaries to receive extra payments this month. The Social Security Administration (SSA) distributes payments on a set schedule, with Social Security checks sent out on the second, third, and fourth Wednesdays of each month. Meanwhile, Supplemental Security Income (SSI), which supports individuals with disabilities and low-income seniors, is typically paid on the first of the month unless that date falls on a weekend or holiday.
This year, because September 1 falls on a Sunday, SSI beneficiaries will receive two payments in August. The first payment was made on August 1, and the second will arrive on Friday, August 30. Single beneficiaries will receive a total of $1,886 this month, while couples will get up to $2,830. Typically, single individuals receive a check worth $943, and couples receive $1,415.
Not the First Time
Approximately 7.4 million Americans benefit from SSI, and while it may seem like receiving two checks in August means extra money, this arrangement is simply an early payment for September. This situation will happen again in November, according to the SSA’s payment schedule, and it has occurred in the past as well.
Although retirees received a small cost-of-living adjustment (COLA) this year, many continue to face the challenges of ongoing inflation, which has significantly impacted their purchasing power. A survey from Atticus, shared by Fox Business, found that around 62% of seniors on Social Security are dissatisfied with the 3.2% increase they will see in 2024. Nearly three in five seniors reported financial difficulties as the prices of essential items like food, rent, and medical care remain high. About 20% of Social Security recipients are considering returning to work this year due to the minimal increase.
Retirees have expressed concerns about rising costs, especially for utilities, insurance, heating, and food.
Understanding COLA
As of January, over 66 million Americans receiving Social Security have benefited from this year’s adjustments. The COLA for 2024 represents a significant drop from 2023 when recipients enjoyed an 8.7% increase—the largest in four decades. However, this year’s increase is still higher than the 2.6% average rise over the last 20 years.
Looking ahead, recipients are projected to receive a 2.63% COLA in 2025, which is below the current inflation rate of 3%, marking the lowest annual adjustment since 2021. The SSA is expected to finalize the adjustment percentage in mid-October.
This year’s increase raised the average monthly benefit for retirees from $1,907 by approximately $59. The annual changes in Social Security payments are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which reflects data collected from July, August, and September.
As August progresses, many seniors will be closely monitoring their finances, hoping these double payments provide some relief from their ongoing financial pressures. While Social Security may seem straightforward, there are some complexities to be aware of. A financial expert recently shared with The U.S. Sun how to avoid two common mistakes that could cost you $1,000. There are also concerns about a potential decrease in the 2025 COLA.
