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Newsweek
2 days ago
- Business
- Newsweek
Social Security: Two Types of Benefits Being Paid This Week
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Social Security payments are set to be made to millions of beneficiaries this week. Why It Matters The Social Security Administration (SSA) pays out retirement, survivor and disability benefits to more than 70 million Americans. Retirement, spousal and survivor checks are distributed on different dates throughout the month, usually dependent on the recipient's birthday and whether they collect multiple types of payment. What To Know This week, payments are scheduled to be made to those who receive retirement, survivor and spousal benefits as well as disability payments. On July 1, those who receive Supplemental Security Income (SSI) benefits—for those who are blind or disabled with limited income and resources—are expected to receive their monthly payment on July 1. Recipients collecting both retirement, spousal or survivor benefits and SSI who began receiving benefits before May 1997 are scheduled to be paid SSI on July 1 and their other benefits on July 3. A stock image of a Social Security card with U.S. dollars. A stock image of a Social Security card with U.S. dollars. GETTY How Much Social Security Can I Get? In May 2025, the average monthly benefit for a retired worker reached $2,002.39—the first time it has exceeded $2,000, according to the SSA. "The average Social Security benefit amount changes monthly," an agency spokesperson told Newsweek. "Social Security benefits are based on a worker's highest 35 years of earnings. As wages tend to rise over time, each new group of retirees raises the average benefit amount, since their benefit calculations typically reflect higher earnings." Individual payments vary, however, as benefits are based on how much a recipient earns during their career and the age at which they decide to begin collecting. The highest benefit possible—$5,108—is available for those who delay claiming until age 70. SSI payments averaged $718.30 for 7.4 million recipients in May. How much beneficiaries get is based on how much money they earn, if any at all, and other resources available to them. Benefits Increase for 2026 The cost-of-living adjustment (COLA) is a mechanism intended to help benefits keep pace with inflation and preserve their value over time, and it usually means the benefit amount increases from year to year. The COLA is determined using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which tracks the spending patterns of working Americans. The Bureau of Labor Statistics gathers this information through a quarterly survey that monitors price shifts across about 80,000 goods and services. These data points are then compiled into an index that reflects percentage changes over time. In the aftermath of the COVID-19 pandemic, rising inflation has resulted in higher-than-normal benefit increases. In 2024, the COLA raised payments by 3.2 percent, while 2023 saw a historic 8.7 percent increase—driven by pandemic-related inflation. Looking ahead to 2026, recipients can likely expect a 2.5 percent COLA, according to new estimates from independent Social Security and Medicare policy analyst Mary Johnson and the Senior Citizens League—mirroring the adjustment made for 2025. The SSA is set to officially announce the 2026 COLA in October. Full Schedule of Payments for July 2025 In July, further benefits are scheduled to be paid on the following dates:
Yahoo
28-05-2025
- Business
- Yahoo
Social Security Set To Make History By Crossing $2,000 Barrier For First Time, But Seniors Still Losing Ground To Inflation
For the first time in the 90-year history of Social Security, the average monthly benefit for retired workers is projected to go beyond $2,000 next month. Despite the historic nature of this milestone, it is more an indication of inflation than financial security for beneficiaries. What Happened: The Social Security Administration's monthly reports show that the average retired-worker benefit was $1,999.97 in April. A statistical snapshot issued by the SSA indicates that May's average benefit will surpass the $2,000 threshold. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share. Nancy Pelosi Invested $5 Million In An AI Company Last Year — Here's How You Can Invest In Multiple Pre-IPO AI Startups With Just $1,000. This landmark is primarily on account of rising wages, new retirees entering the system, and run-of-the-mill cost-of-living adjustments. Why It Matters: While a $2,000 check may seem like a triumph, it hides a more concerning trend. According to Yahoo Finance, Social Security's purchasing power has consistently declined. A report from The Senior Citizens League in 2023 revealed that benefits lost 36% of their value between 2000 and 2023. From 2010 to mid-2024, buying power fell another 20%. Much of this decline relates to how inflation is calculated. The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), the metric used for Social Security adjustments, does not accurately reflect how seniors spend, especially when it comes to housing and healthcare. Cost-of-living increases have not kept pace with real-world expenses. 'A Social Security dollar simply isn't what it once was,' the report states. Retirees who depend on these monthly payments to purchase essentials are struggling to stay within budget. The $2000 milestone comes just as the Department of Education has restarted involuntary collections on defaulted student loans, with defaulters at risk of receiving significantly reduced SSA checks. Despite President Donald Trump's claims about bolstering Social Security, multiple crucial changes to the program, capable of impacting millions of beneficiaries, are not up to him. Read Next: Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late. Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.30/share! Photo courtesy: Shutterstock Send To MSN: Send to MSN Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Social Security Set To Make History By Crossing $2,000 Barrier For First Time, But Seniors Still Losing Ground To Inflation originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
