Some Americans will experience a rare occurrence this week as they receive two Social Security payments within a short span of time. This anomaly arises due to a peculiar aspect of the Social Security payment schedule.
Typically, the Social Security Administration issues payments once a week, distributing Social Security checks on the second, third, and fourth Wednesdays of each month. Additionally, Supplemental Security Income (SSI), which provides assistance to disabled individuals and older Americans with limited incomes, is disbursed on the first of each month, unless it falls on a weekend or holiday. In cases where the first of the month aligns with the fourth Wednesday of the previous month, some SSI recipients will receive both their regular payment and their upcoming month’s payment within the same week. Consequently, approximately 7.4 million SSI recipients are set to receive their March payments on Friday, March 1.
It’s important to note that the dual deposits do not signify an increase in benefits for retirees. Instead, it represents an early disbursement of the following month’s payment.
This occurrence is expected to repeat twice more this year, in August and November, as outlined in the payment schedule provided by the Social Security Administration’s website.
Many retirees are feeling the pinch of high inflation despite receiving a modest cost-of-living adjustment this year. While the 3.2% increase in Social Security payments for 2024 may seem substantial, a significant portion of seniors – approximately 62% according to a survey by Atticus – express dissatisfaction with the adjustment.
The reality for many retirees is that the 3.2% increase does little to alleviate their financial struggles, especially as the cost of essential goods and services continues to rise. Nearly three in five seniors report facing financial difficulties, with concerns centering around rising expenses for necessities such as food, rent, and medical care. In response to the inadequate adjustment, approximately 20% of Social Security recipients are considering seeking employment in 2024 to supplement their income.
Despite the 3.2% increase being higher than the average adjustment over the past two decades, it represents a significant decline from the 8.7% bump received in 2023 – the highest in forty years. However, it’s worth noting that even with this increase, the average retiree benefit of $1,907 only saw a monthly boost of around $59.
The Social Security cost-of-living adjustment is determined based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during the months of July, August, and September of the preceding year. While this calculation method aims to reflect changes in the cost of living, many retirees feel that the adjustments are insufficient to keep up with the realities of rising inflation and expenses.