Social Security serves as a financial backbone for millions of Americans, particularly the elderly and disabled. This June, however, some recipients will notice an unusual occurrence—a missing payment. This anomaly isn’t a mistake but the result of a scheduling quirk within the system.
Typically, the Social Security Administration (SSA) disburses payments on the second, third, and fourth Wednesdays of each month.
For those receiving Supplemental Social Security Income (SSI)—aimed at supporting disabled individuals and older Americans with low incomes—the payments usually arrive on the first of each month. However, if the first falls on a weekend or holiday, the schedule adjusts accordingly.
The May-June Transition Explained
In May 2023, due to June 1 falling on a Saturday, the SSA made an early disbursement. Consequently, approximately 7.4 million SSI recipients received their June payment on the last day of May, Friday, May 31. While this may appear as if recipients are receiving an extra payment, it is essentially an advance on their June benefits. Such adjustments are slated to occur again in August and November of this year, as outlined on the SSA’s official schedule of payments.
Adjusting to the Cost of Living: A Closer Look at Inflation’s Impact
The Social Security payments for 2024 have seen a modest cost-of-living adjustment. However, this increase seems insufficient for many, as inflation continues to erode purchasing power significantly. A survey by Atticus highlights a stark reality: approximately 62% of seniors are dissatisfied with the 3.2% increase, especially as it does not align well with the escalating costs of essentials like food, rent, and healthcare.
Nearly 60% of seniors express financial distress under these pressures, with about 20% considering re-entering the workforce to manage the financial shortfall. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, voiced concerns on ‘Special Report’ about the long-term sustainability of Social Security and Medicare amidst these economic challenges.
The Bigger Picture: Yearly Adjustments and Economic Realities
The annual adjustment of Social Security benefits is determined by the consumer price index for Urban Wage Earners and Clerical Workers (CPI-W) observed during July, August, and September of the previous year. The 2024 adjustment has increased the average retiree benefit by about $59, bringing it to $1,907 per month. This increase, although helpful, is a sharp drop from the 8.7% increase in 2023—the highest in the last forty years.
June’s Social Security Shift: Navigating Economic Challenges
As retirees navigate these challenging economic waters, the adjustment in Social Security payments and the direct impact of inflation underscore the critical nature of these benefits for millions of Americans. The shift in payment schedules this June serves as a reminder of the system’s complexity and the delicate balance needed to maintain financial stability for the nation’s most vulnerable populations.
