In slightly over one week, retirees can expect to receive their first monthly Social Security payment of $4,555 as scheduled by the Social Security Administration.
The maximum benefit is not guaranteed to every retiree because it is based on both the number of years a person has paid into Social Security and the total amount paid into the program.
Impact on Social Security Payments
Cost-of-living increases for Social Security claimants are calculated annually using the CPI-W for wage earners and clerical workers in metropolitan areas.
The growth in 2024, however, may be much smaller than the increase in 2023, at 2.7%. A rise of 8.7 percent was seen by retirees in 2023.
If Congress does not agree on funding for the program before the Social Security trust runs out, payments to recipients may be reduced in the future. The trust fund backing the initiative is projected to empty by the year 2033.
Proposed Retirement Age Increase
A recent plan by House Republicans suggests gradually increasing the full retirement age to 69 by 2033, from the present 67. Future retirees have the option of collecting their full Social Security income either by retiring at age 62 or waiting until age 70.
Every retiree receives a single monthly check, however the exact day that check arrives is determined by the person’s birthday.
If a person’s birthday falls on the first, second, or tenth of the month, they will receive a check sooner in the month than those whose birthday falls on the eleventh, twentieth, or later in the month.
Each beneficiary has a different maximum payout that is determined by their age when they retire. Beneficiaries can receive up to $2,572 per month once they reach the retirement age of 62. Benefits max out at $3,627 for those who retire at age 67.
The Social Security Administration (SSA) states that retirees who wait until age 70 are eligible for a monthly benefit of up to $4,555.
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Source: Washington Examiner via MSN