Social Security Payments – Eligibility Criteria, Amount, Payout Dates

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Social Security Payments July

Social Security is a federal insurance program that provides benefits to retirees, disabled individuals, and survivors of deceased workers. In 2024, nearly 68 million Americans will receive Social Security benefits each month on average, amounting to roughly $1.5 trillion in total benefits for the year.

Social Security Payments

Social Security benefits are not simply payments for retirees. The Old-Age, Survivors, and Disability Insurance (OASDI) program is managed by the Social Security Administration (SSA).

The SSA uses a formula to calculate your Primary Insurance Amount (PIA), which is the basis for your retirement benefit. Social Security provides benefits to survivors of deceased workers. More than one in eight of today’s 20-year-olds will die before reaching age 67. 

In 2023, approximately 96% of individuals aged 20-49 who were employed in covered jobs have survivors insurance that protects their children under 18 and surviving spouses who care for children under 16.

Social Security Payments Eligibility Criteria 

Eligibility for Social Security payments depends on the specific type of benefit you’re interested in:

Retirement Benefits:

  • Age: The earliest you can claim retirement benefits is age 62, but you will receive a reduced benefit amount. 
  • Work credits: You need a minimum number of work credits to qualify. You generally earn one credit for each quarter of work where you pay Social Security taxes. 

Disability Benefits:

  • Disability: You must meet the SSA’s definition of disability, meaning you have a medical condition that is expected to last at least one year or result in death, and that prevents you from performing any substantial work.
  • Work credits: You need a sufficient number of work credits recent to your disability onset. 

Survivors Benefits:

  • Deceased worker’s earnings history: The deceased worker must have been eligible for Social Security benefits (either retired or disabled) or have sufficient work credits at the time of death.
  • Relationship to the deceased: Spouses, dependent children, and sometimes parents of the deceased worker may be eligible for benefits.
  • Delayed Retirement Credits: If you delay claiming retirement benefits past your full retirement age, your benefit amount will increase.
  • Social Security Earnings Test: If you continue to work and earn income after claiming retirement benefits before full retirement age, your benefits may be temporarily reduced.

Social Security Payments Amount

The amount of your Social Security payment depends on two main factors:

  • Average Indexed Monthly Earnings (AIME): This is a calculation based on your highest 35 years of earnings, adjusted for inflation. 
  • Claiming Age: When you claim retirement benefits can significantly impact the amount you receive.
Year of Birth Full (normal) Retirement Age Months between age 62 and full retirement age At Age 62 A $1,000retirement benefit would be reduced to The retirement benefit is reduced by A $500 spouse’s benefit would be reduced to
1943-1954 66 48 $750 25.00% $350 30.00%
1955 66 & 2 months 50 $741.25 25.83% $345.83 30.83%
1956 66 & 4 months 52 $733.33 26.67% $341.67 31.67%
1957 66 & 6 months 54 $725.00 27.50% $337.50 32.50%
1958 66 & 8 months 56 $716.67 28.33% $333.33 33.33%
1959 66 & 10 months 58 $708.33 29.17% $329.17 34.17%
1960 & later 67 60 $700 30.00% $325 35%

When to Expect Your Social Security Payments?

Social Security payments arrive like clockwork, but the exact day depends on your birthdate. The Social Security payment schedule is as follows:

  • Payment Dates:
    • Social Security payments are typically distributed on Wednesdays throughout the month. There are three designated Wednesdays for retirement, survivor, and disability benefits (excluding SSI):
  • Second Wednesday: If you were born between the 1st and the 10th of any month, you will receive your payment on the second Wednesday of that month.
  • Third Wednesday: If your birthday falls between the 11th and the 20th, your payment arrives on the third Wednesday of the month.
  • Fourth Wednesday: For birthdays between the 21st and the 31st, your Social Security payment comes on the fourth Wednesday of the month.

Supplemental Security Income (SSI):

  • SSI payments for low-income individuals, elderly adults, and blind people are distributed on the first day of each month.

Exceptions:

  • Before May 1997: If you started receiving Social Security benefits before May 1997, you might still receive your payment on the third Wednesday of the month, regardless of your birthdate.
  • Both Social Security and SSI: If you receive both Social Security and SSI, you might get separate payments on the designated days mentioned above.
  • If your payment date falls on a federal holiday, it might be disbursed on the business day before or after the holiday.
  • Allow a few extra days for mailed payments to arrive, especially during the first month you start receiving benefits.

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