Up to $4,873 in Social Security Direct Deposits will be disbursed this week
According to Newsweek, This week, retirees collecting Social Security benefits can expect their payments, as the Social Security Administration (SSA) disburses funds to millions of Americans. Payments are staggered throughout the month, depending on the beneficiary’s birthdate. In June alone, retirees and their family members accounted for 87 percent of all benefit claims, highlighting the importance of these payments for millions of households.
For those born between the 11th and 20th of any month, Social Security checks will be distributed on Wednesday, August 21. Last week, beneficiaries with birthdays between the 1st and 10th received their payments, while those with birthdays from the 21st to the 31st will receive theirs on Wednesday, August 28.
If your payment does not arrive as expected, the SSA recommends waiting three working days before contacting them to allow for potential delays.
The amount each recipient receives varies based on factors such as the age at which they started claiming benefits and their earnings during their highest-paid working years. In 2024, the maximum monthly benefit for those who begin claiming at age 70 is $4,873. Conversely, those who choose to start receiving benefits at the earliest eligible age of 62 can receive up to $2,710 per month.
Looking ahead to 2025, Social Security benefits are expected to increase due to the Cost of Living Adjustment (COLA). Mary Johnson, an independent Social Security and Medicare policy analyst, recently told Newsweek that she anticipates a 2.6 percent boost in monthly payments. The Senior Citizens League (TSCL) similarly predicts a 2.57 percent increase, down slightly from an earlier forecast of 2.63 percent.
This adjustment is influenced by the recent drop in inflation, which fell to 2.9 percent in July from 3 percent in June. While lower inflation generally benefits consumers by slowing the rise of prices, it also suggests that Social Security recipients may see smaller increases in their benefits next year.
“The estimates we’re seeing of COLA for 2025 signal an encouraging sign of cooling inflation,” said Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, in a statement to Newsweek. “At the same point, seniors may look at this and still be frustrated, because the estimate still points to higher prices on many items sticking around. It’s progress, but perhaps not enough for seniors who are exhausted from seeing prices substantially over their pre-pandemic amounts.”
The SSA is expected to announce the next COLA update in October, which will provide further insight into the adjustments for 2025.
