Social Security to Issue Third Round of Payments Up to $4,873 Within 7 Days

Social Security has confirmed the third round of payments for retired workers is just around the corner. On Wednesday, July 24th, retirees who claimed benefits after May 1997 and were born between the 21st and the 31st will receive their new Social Security payment, potentially up to $4,873.

However, it’s important to note that not all beneficiaries will receive this maximum amount. The payment each retiree receives depends on factors like their full retirement age, work history, and the average Social Security contributions made before claiming benefits.

Dependence

For millions of older adults aged 65 and older, Social Security is a crucial lifeline. It helps cover living expenses, healthcare, housing, entertainment, taxes, debt, travel, and hobbies. Without these payments, many seniors would struggle to make ends meet and might fall into poverty.

While 12% of seniors are currently in need, over half would be in a worse financial situation without Social Security benefits. The Economic Policy Institute reports that 30% of elderly beneficiaries rely on Social Security for 90% or more of their income, and two-thirds depend on it for at least 50% of their income.

Payment

A new Social Security payment of up to $4,873 will be deposited into bank accounts next week. Each month, retired workers, survivors, and disabled beneficiaries receive four payments. However, some months see slight variations due to federal holidays or weekends affecting payment dates. The Social Security Administration (SSA), which provides checks to over 72 million beneficiaries in the U.S., manages these adjustments.

According to this month’s payment schedule, retirees will receive their benefits as follows:

• Wednesday, July 10th: Retired Americans born between the 1st and the 10th will receive their deposit.
• Wednesday, July 17th: Retired Americans born between the 11th and the 20th will receive their deposit.
• Wednesday, July 24th: Retired Americans born between the 21st and the 31st will receive their deposit.

Besides the maximum monthly payment of $4,873, there are other amounts available for retirees this year. For example, those who claimed benefits before reaching full retirement age (FRA) of 62 years old could receive up to $2,710. Those who waited until 67 could receive up to $3,822. The payment amount is also influenced by the average Social Security contributions made to the system. Higher contributions typically mean a higher benefit payment at retirement.

Protection

As the cost of living rises, seniors should consider strategies to protect their finances and future wealth. Here are three strategies to build a strong financial foundation capable of withstanding economic pressures:

Long-term Investing

Compounding is a powerful tool for long-term investing. Starting early and reinvesting dividends can significantly grow your investments. For example, a 25-year-old earning 8% per year could accumulate over $1.5 million by age 65.

Inflation-Protected Securities

Investments like Treasury Inflation-Protected Securities (TIPS) are designed to guard against inflation. They increase their principal value with inflation and decrease it with deflation, ensuring investments keep pace with rising prices.

Diversify Investments

Diversifying investments across asset classes such as stocks, bonds, real estate, and commodities helps mitigate risks associated with individual market downturns. For instance, real estate and commodities like gold often perform well during high inflation, offsetting losses in other areas.

While Social Security remains a vital support for many seniors, planning and investing wisely can help secure financial stability and peace of mind in retirement. It’s essential to know your benefits and look into strategies to protect your wealth against economic challenges.

FAQs