Changes to Social Security Payments in June and How They Affect Americans

Understanding Social Security Payments: Changes and Future Predictions

Introduction:
The scheduling of Social Security payments can sometimes result in Americans receiving one less payment in a particular month. In June, this is due to the way payments are scheduled, with June 1 falling on a Saturday. Let’s explore this issue further and delve into other important aspects of Social Security payments.

Supplemental Social Security Income (SSI) Payments:
The Social Security Administration (SSA) typically sends out SSI payments to individuals with disabilities or older adults with little to no income on the first of each month. However, in June, the payments will be sent on Friday, May 31, as per the agency’s payment schedule for 2024 and 2025. It’s important to note that the May SSI checks recipients receive in advance are not extra money but an early payment for the following month. The next SSI payment will then be issued on July 1. Similar payment quirks are also expected to occur in 2025, specifically in August and November.

Standard Social Security Payments for Retired Americans:
For retired Americans, there will be no changes to the standard Social Security payments in June. These payments are typically sent out on the second, third, and fourth Wednesdays of each month, depending on the recipient’s birth date.

Insight: According to a report from the Social Security Administration, around 7.4 million people receive SSI payments each month. The program aims to provide a minimum level of income for aged, blind, or disabled individuals. However, the payments vary from person to person.

Expanding Access to the SSI Program:
The SSA recently announced plans to expand access to the SSI program starting in September. This expansion aims to allow more people to qualify for SSI, increase payment amounts for some recipients, and reduce reporting burdens for individuals living in public assistance households.

Insight: The maximum amount a person can receive under SSI is $943 per month, while a couple can receive $1,415. These figures, like standard Social Security payments, are subject to cost-of-living adjustments (COLA) based on inflation. However, the actual benefit amount may vary depending on factors such as countable income and additional financial assistance provided by certain states.

Retirees’ Concerns and Inflation:
While there was an increase in payments for retirees in 2024, many have reported difficulties in affording certain services due to relatively high inflation. A recent survey by Atticus revealed that approximately 62% of retired individuals are dissatisfied with the 3.2% COLA increase for this year. As of April, the average benefit paid to retired workers was $1,915 per month, roughly $80 more than the previous year.

Future Social Security and SSI Payments:
Predictions for next year’s Social Security and SSI payments indicate a 2.66% increase. This prediction is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Although the CPI-W was 3.4% in April 2024, slightly lower than the previous month’s data, the Senior Citizens League suggests that the increase is still likely.

Insight: The U.S. Federal Reserve closely monitors the Personal Consumption Expenditures (PCE) price index, which rose by 0.3% in April, matching the gain in March. Grocery prices have eased, but they remain significantly higher than pre-pandemic levels. Additionally, long-lasting goods, including new and used cars, furniture, and appliances, have seen a drop in prices. Used car prices, in particular, have decreased by nearly 5% over the past year.

Conclusion:
Understanding how Social Security payments are scheduled is crucial for recipients. While some Americans may receive one less Social Security payment in June, the standard payments for retired individuals will remain unaffected. Furthermore, the expansion of the SSI program aims to provide greater access and increased payment amounts for eligible individuals. However, concerns regarding inflation and the purchasing power of retirees continue to persist. As predictions for next year’s payments indicate, adjustments will be made based on the CPI-W and other economic factors. It is essential for recipients to stay informed about these changes to ensure financial stability in the future.