The first round of retirement Social Security payments for July will be distributed on Wednesday to senior citizens, with some beneficiaries potentially receiving up to $4,873. This amount depends on the recipient’s retirement age and income level. Those born between the 1st and 10th of any month and who started claiming benefits after May 1997 are scheduled to receive their payments on Wednesday, July 10.
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Payment Factors
Despite the scheduled date, most recipients will receive lesser amounts. The specific payment each person gets is influenced by two factors: their total career earnings and the age at which they chose to retire. The three key retirement ages are 62, 66 or 67 (full retirement age or FRA), and 70. In 2024, those retiring at 67 can receive up to $3,822 monthly, those retiring at 62 up to $2,710, and those retiring at 70 up to $4,873.
Distribution Schedule
The timing of benefits distribution also depends on the recipient’s birthdate. Those born early in the month will get their payments by July 10, while others will wait longer. According to the Social Security Administration (SSA) schedule, payments for those born between the 11th and the 20th will be sent out on July 17, and those born between the 21st and the 31st will receive theirs on July 24.
Social Security Updates
Social Security is facing potential changes due to a projected funding crisis by the mid-2030s. Many seniors are concerned that their monthly benefits are not keeping pace with inflation. Financial literacy instructor Alex Beene from Tennessee highlights this issue, noting that seniors face unexpected price increases on everyday items during retirement.
Proposed Legislation
Senator Kirsten Gillibrand has proposed the Boosting Benefits and COLAs for Seniors Act, aiming to increase monthly payments for seniors. “Social Security is a lifeline for older adults,” she explains. “For many, it’s their main source of income. But benefits aren’t keeping pace with rising costs, leaving many older Americans struggling to afford the basics—particularly health care.”
The bill proposes adjusting the annual cost-of-living adjustment (COLA) for Social Security by considering the expenses associated with senior health care. Instead of using the consumer price index (CPI) for urban wage earners and clerical workers, it suggests using the CPI for the elderly.
Managing Expectations
Professor Beene advises recipients to manage their expectations regarding potential payment increases. While the promise of higher health care cost consideration is welcome, it remains to be seen how other living costs will be factored in with the adjusted model. Hopefully, other expenses will receive the same generous consideration as health care.
In summary, while July’s Social Security payments provide crucial support to retirees, the ongoing inflation and potential funding crisis call for legislative updates to ensure that benefits keep pace with rising costs. The proposed Boosting Benefits and COLAs for Seniors Act aims to address these issues, offering a hopeful but cautious outlook for the future of Social Security.
FAQs
Who receives Social Security payments on July 10?
Those born between the 1st and 10th who started benefits post-May 1997.
How much can retirees receive at age 70?
Up to $4,873 monthly.
What factors affect Social Security payments?
Career earnings and retirement age.
When are payments for those born between July 11 and 20?
Payments are sent out on July 17.
What does the proposed Boosting Benefits and COLAs for Seniors Act aim to do?
Increase monthly payments for seniors considering health care costs.
