Since its creation in 1935, Social Security has been a vital program providing economic security to millions of retirees and people with disabilities of all ages in the United States.
This system is financed through payroll taxes, which are contributed by both employers and employees. However, analysts warn that if changes are not implemented in the system, the Social Security Administration (SSA) could face difficulties in guaranteeing full payments to beneficiaries starting in 2034.
This scenario is a consequence of the increase in the number of retirees and the decrease in workers contributing to the system, which puts the United States Congress in an urgent position to take measures to ensure that beneficiaries do not suffer reductions in their payments.
Some may receive up to $5,108 from Social Security in January
In less than two weeks, millions of Social Security beneficiaries will be about to receive their first round of January 2025 retirement checks. These payments will rise up to $4,993 for those who choose to retire at age 70, thanks to the cost of retirement adjustment. (COLA) of 2.5% applied to the figures for fiscal year 2024.
Now, this is a thing you might always have in mind: although the maximum amount of Social Security for 2025 is $5,108 per month or $61,296 per year, most beneficiaries do not receive this maximum amount.
Beneficiaries born between the 1st and 10th of each month will receive their regular monthly checks on January 8, 2025, according to the schedule established by the SSA.
The distribution of retirement checks is carried out in three different cycles, depending on the birthday of each beneficiary, which facilitates an orderly and efficient process in the delivery of payments.
The other two groups that will receive their payments will be distributed on the following dates:
- Beneficiaries born between the 11th and 20th of any given month: Your payment will arrive on the third Wednesday of the month, which is January 15.
- Beneficiaries born between the 21st and 31st of any given month: your payment will arrive on the fourth Wednesday of the month, January 22.
The amount that retirees receive depends on several factors, such as retirement age, the number of years of contributions to the system and the total contributions made during their working life.
For example, those who decide to retire at age 70 can expect to receive up to $4,993 per month. In contrast, those who choose to retire at age 62, the earliest age to access benefits, can receive a maximum of $2,776.75 per month, also adjusted for the COLA.
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To reach the maximum amount, a person must have postponed receiving benefits until age 70 and have earned the maximum taxable amount, which is $176,100 in 2024, for at least 35 years.
For those who begin receiving benefits at full retirement age, which is 66 or 67 depending on date of birth, the maximum amount will be $4,043. On the other hand, the average Social Security check for retired workers in November 2024 was about $1,925.
Recipients can access a personalized estimate of how much they can expect to receive each month through the calculator provided by the SSA, which takes into account their work history and the amounts contributed.
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It is essential to note that monthly Social Security payments are different from other benefits administered by the SSA, such as Disability Insurance (SSDI) or Supplemental Security Income (SSI). The latter are sent at the beginning of each month to people with significant disabilities that affect their ability to work.