In just five days, beneficiaries will start receiving the first wave of this month’s Social Security retirement benefits, which may total up to $4,194.
The Social Security Administration’s retirement payments, which are distributed to beneficiaries in waves of three, always start on the second Wednesday of a month and end with the third payment on the fourth Wednesday of the same month. According to the administration’s calendar, the payments due to be distributed on January 11 will go to individuals who were born between the first and tenth of a given month.
Number of Variables
Based on a number of variables, including the recipient’s choice of when to retire and begin collecting Social Security payments, the amount of money recipients will get from these checks will differ. The maximum reward of $4,194 is only available to retirees who were 70 years old or older. According to the SSA, beneficiaries who retired at 67 will get a maximum payment of $3,345 and those who retired at 62 would get a maximum check of $2,364.
Other recipients of retirement payments from the SSA will get their money on the Wednesdays after the ones planned for January 11 as well. Those whose birthdays occur between January 11 and January 20 receive money on January 18, while those whose birthdays fall between January 21 and January 31 receive cash last on January 25.
Regular Social Security benefits are based on earnings made over the course of a person’s lifetime and are not subject to restrictions based on wealth or income. The Supplemental Security Income (SSI) and disability insurance payments that are given out by the SSA are two separate types of payments, respectively. The latter had its January payments on December 30, 2022, and is due to have its next payment on February 1.
Analysts Prediction
Analysts predict that if Congress does nothing, Social Security bankruptcy may happen as early as 2034.
The fact that more people are living longer due to medical and scientific developments, which enables them to receive Social Security payments for longer than anticipated, is one factor contributing to the impending bankruptcy catastrophe.
The Committee for a Responsible Federal Budget asserts that fewer individuals are working and contributing taxes to provide these benefits on a regular basis.
Security Trust Funds
To support its many social insurance activities, Social Security maintains two trust funds. Retirement-age employees, their families, and some survivors of workers who have passed away get monthly payments from the Old-Age and Survivors Insurance (OASI) trust fund. Although the full retirement age is 67, employees may start receiving benefits at any time between the ages of 62 and 70.
Workers with impairments that keep them out of the workforce get monthly payments from the Social Security Disability Insurance (SSDI) trust fund.
Both schemes are supported by a 12.4% payroll tax that is levied on employees and employers up to a certain wage ceiling. The SSDI trust fund receives 1.8 percent while the OASI trust fund receives 10.6 percentage points.
