New Social Security Payments Announced: Are You Eligible for the Extra $1,900?

Juilia Ruskin
5 Min Read

In recent news, Social Security has introduced a new monthly check for retirees born between the 1st and the 10th of any month. This month, three Social Security payments are scheduled for the second, third, and fourth Wednesdays.

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If you were born on the mentioned dates and claimed benefits after May 1997, you can expect a new deposit in your account soon. On average, recipients will receive around $1,900 per month, but this amount can vary based on several factors like the age you claimed benefits, your work history, and the Social Security taxes you paid.

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Who Is Eligible for Social Security Payments?

To be eligible for Social Security payments, most seniors need to have contributed to the system for at least ten years. This means they need to accumulate 40 credits, which are earned through Social Security taxes deducted from their paychecks.

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Social Security doesn’t only provide financial security for seniors; eligible spouses, children, and sometimes the parents of deceased workers may also qualify for these benefits.

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Additional Payment Amounts for Retirees

If you qualify for retirement benefits or plan to apply soon, it’s important to understand how the Social Security Administration (SSA) calculates your monthly payment. The full retirement age (FRA) is currently set at 67.

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If you claim benefits at this age and have met the required work history and contributions, you could receive up to $3,822 per month. Retiring before reaching the FRA will reduce your payments, with a maximum of $2,710 per month for early retirees.

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Conversely, those who delay benefits until age 70 and have made maximum contributions could receive up to $4,873 per month. Consulting a financial advisor can help you determine the best strategy for your financial goals.

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Social Security Payment Dates

This month’s Social Security payments are scheduled based on retirees’ birth dates. Here are the confirmed dates:

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  • July 3rd (Wednesday): For retirees who collected benefits before May 1997.
  • 2nd Wednesday (July 10th): For retirees born between the 1st and 10th.
  • 3rd Wednesday (July 17th): For retirees born between the 11th and 20th.
  • 4th Wednesday (July 24th): For retirees born between the 21st and 31st.

Steps to Create a Retirement Budget

Creating a retirement budget is essential to ensure financial stability. Here are three steps to help you create an effective retirement budget:

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  1. Estimate Your Retirement Income Goal: According to Northwestern Mutual, most retirees believe they need $1.46 million to retire comfortably. This amount can vary based on your personal and financial goals.
  2. Determine Your Living Expenses: Consider costs like housing, food, insurance, debt, child care, and recreation. Review your current expenses and account for potential increases, especially in healthcare and medical expenses.
  3. Develop a Spending Strategy: Create a budget tracking system to compare your actual income with predicted expenses. Adjust your budget as needed, considering different revenue streams. Use tools like budgeting apps, spreadsheets, or even pen and paper to manage your finances effectively.

1. Who is eligible for the new monthly Social Security check?

Retirees born between the 1st and the 10th who claimed benefits after May 1997 are eligible for the new monthly check.

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2. How much can retirees expect to receive monthly?

On average, retirees can receive around $1,900 per month, but this amount can vary based on various factors.

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3. What factors affect the amount of Social Security benefits?

The age you claim benefits, your work history, and the Social Security taxes you paid are key factors that affect the amount of your benefits.

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4. What is the full retirement age (FRA) for Social Security?

The current FRA is 67, but some retirees choose to claim benefits earlier or delay them until age 70.

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5. Why is creating a retirement budget important?

A retirement budget helps you manage your finances better, ensuring you can cover all necessary expenses and adjust for lifestyle changes.

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An up-and-coming tax attorney passionate about educating readers on tax planning and mitigation strategies. Juilia articles offer practical advice and actionable tips to help individuals and businesses navigate the intricacies of tax law with confidence.
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