In June, Social Security payments will follow a slightly altered schedule to ensure recipients receive their benefits on time. This adjustment is essential for many who rely heavily on these payments.
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Why the Change in Schedule?
The Social Security Administration (SSA) occasionally shifts payment dates when the first of the month falls on a weekend or holiday. For 2024, this situation affects the months of June, September, and December. Since June 1st falls on a Saturday, SSI payments will be processed earlier on Friday, May 31st. This adjustment helps avoid any financial disruption for recipients.
Regular Payment Schedule
- First of the Month: Typically for SSI recipients, adjusted if it falls on a weekend.
- Third of the Month: Regular Social Security checks.
- Second, Third, Fourth Wednesday: Other Social Security payments, depending on the recipient’s birth date.
SSA’s Statement on Schedule Changes
The SSA clarified the reason for these adjustments: “We do this to avoid putting you at a financial disadvantage and make sure that you don’t have to wait beyond the first of the month to get your payment. It does not mean that you are receiving a duplicate payment in the previous month, so you do not need to contact us to report the second payment.”
Impact of a Low COLA on Social Security
Approximately 72 million Americans receive payments from the SSA. Any delay in these payments can significantly affect families who depend on SSI to meet their financial needs. The recent 3.2% cost-of-living adjustment (COLA) provided a modest boost, but many beneficiaries still struggle with rising costs.
Financial Struggles Despite COLA
The average monthly Social Security check is $1,907, and the recent COLA increase amounted to about $50 per month. However, this increment falls short of covering the gap between rising expenses and fixed incomes, especially in light of last year’s 8.7% inflation rate.
Expert Opinions on COLA
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, noted, “While COLA payments will increase to offset the effects of inflation, the problem many have with the potential percentage jump is it won’t get far enough to meet most of the financial needs of seniors. Obviously, daily expenses for this age group continue to rise, but the uptick in healthcare costs is putting an additional strain on them, and COLA payments may not be enough to match that uptick.”
Michael Ryan, finance expert and founder/CEO of michaelryanmoney.com, added, “The majority of seniors still feel like their costs are rising faster than those annual adjustments. So while the COLA certainly helps, it often still doesn’t fully cover the real inflation draining seniors’ buying power.”
Proposals for a More Accurate COLA
Many experts suggest a bigger adjustment to ensure the purchasing power of those dependent on their pensions. One proposed solution is changing the index used to calculate the COLA from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to the Consumer Price Index for the Elderly (CPI-E). This index better reflects the spending patterns of people over 62, potentially providing a more realistic adjustment that could better cover costs, especially healthcare.
Commitment to Improvement
Commissioner of Social Security Martin O’Malley emphasized, “I’m committed to making systemic changes to help people access the critical benefits they need, including SSI.”
FAQs
Why is there a change in the Social Security payment schedule for June?
Payments scheduled for June 1st will be processed on May 31st due to the first falling on a Saturday.
How often does the SSA adjust payment dates?
The SSA adjusts payment dates when the first of the month falls on a weekend or holiday to ensure timely delivery.
What is COLA?
COLA stands for cost-of-living adjustment, an annual increase to help Social Security payments keep up with inflation.
How does the CPI-E differ from the CPI-W?
The CPI-E is an index that reflects the spending patterns of people over 62, potentially providing a more accurate COLA for seniors.
What changes are being proposed to improve Social Security payments?
Proposals include using the CPI-E to calculate COLA, ensuring adjustments better match seniors’ rising costs, especially healthcare.