The Social Security Administration (SSA) plays a vital role in supporting approximately 70 million beneficiaries, the majority of whom are retirees.
Additionally, the SSA provides financial assistance to those with little to no income through Supplementary Security Income (SSI) and aids individuals unable to work due to disabilities through Disability payments. Next month, the SSA will make an important announcement that will impact the future of these payments.
The SSA Protects the Most Vulnerable Members of Society
The SSA serves as a crucial social support program for many individuals, often acting as the sole source of income for beneficiaries. For a large portion of Americans, Social Security benefits provide the only form of income upon retirement.
However, the SSA recommends that individuals should have additional sources of income to complement their SSA benefits to ensure financial independence during retirement.
Unlike retirement benefits, which are paid out regardless of other sources of income, SSI and Disability payments depend on the recipient’s financial circumstances and state of residence. For SSI, eligibility requires that an individual has little to no income or resources.
If these circumstances change, a beneficiary may no longer qualify for SSI payments. Similarly, Disability payments support individuals who cannot work due to a disability, but if they are able to find other employment, their Disability benefits may cease.
Important Announcement Regarding SSA Payments Next Month
One crucial aspect of SSA retirement benefits is that once you begin receiving them, your payment amount is fixed and cannot be increased. On the other hand, SSI and Disability payments can fluctuate depending on a variety of factors.
This is why it is essential for retirees to plan carefully when claiming their retirement benefits, as the SSA offers higher monthly payments for those who choose to delay claiming their benefits.
However, there is one exception to this rule: the Cost-of-Living Adjustment (COLA) statistic. This statistic, which is announced annually by the SSA, is applied to all SSA beneficiary payments to adjust for inflation and ensure that benefits retain their purchasing power.
Next month, on October 15, the SSA will announce the new COLA statistic. This statistic is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the third quarter of the current year.
Experts predict a “historically normal” COLA increase of approximately 2.6% to 2.7%, according to Indivar Dutta-Gupta, a visiting fellow with the National Academy of Social Insurance speaking to AARP.
Two Payment Dates for SSI Beneficiaries
While retirees anticipate the new COLA statistic, SSI beneficiaries should also be aware of some important payment schedule changes. Normally, SSI-only beneficiaries receive their payments on the first of each month.
However, because September 1 falls on Labor Day, SSI payments for September will be advanced to August 29.
In October, the payment schedule will revert to normal, but there will be another adjustment. SSI beneficiaries will receive their November payment in advance, as November 1 falls on a weekend.
The SSA typically adheres to a set payment schedule to allow beneficiaries to plan their finances, but payments may be advanced if they fall on a holiday or weekend.
