Retirees – Who Will Receive an Extra Social Security Check in August

In August, some Social Security beneficiaries will experience an uncommon payment schedule. Those who receive Supplemental Security Income (SSI) will get two payments within the month instead of the usual one. The first payment is set for August 1, and the second for August 30.

While this might seem like a bonus, it’s actually an early payment for September. This adjustment is made because September 1 falls on a weekend, and the Social Security Administration (SSA) has a policy to avoid delays that might financially disadvantage recipients. Therefore, there’s no need to worry about reporting the second payment—it’s not an error.

This payment schedule can lead to confusion, especially for those who might think they’ve received extra money. However, it’s important to remember that this is merely a timing adjustment. SSI beneficiaries should plan accordingly, as they won’t see another payment until October 1.

The payment schedule change primarily impacts SSI recipients. Regular Social Security beneficiaries will likely see no alterations in their payment dates. SSI is a program designed to support adults and children with disabilities or blindness, as well as individuals aged 65 and older. As of June, nearly 7.4 million people relied on these benefits, which are entirely separate from retirement or other Social Security disability benefits.

Future Uncertainty

Looking ahead, there are growing concerns about the future of Social Security. Seniors, people with disabilities, and those currently contributing to the system are increasingly worried as experts predict a potential funding crisis. Without action from Congress, the program could face insolvency by the mid-2030s, potentially leading to reduced payments for beneficiaries.

Several proposals have been floated to address this issue, including raising the retirement age, increasing taxes on the wealthy, or cutting benefit levels. However, these ideas are often unpopular, particularly with the American public and many lawmakers. Despite these challenges, Social Security benefits are adjusted yearly through the cost-of-living adjustment (COLA) to help seniors maintain their purchasing power in the face of inflation. However, many beneficiaries argue that these adjustments fail to keep pace with the rising costs of healthcare, food, and housing, which are particularly burdensome for seniors on fixed incomes.

Financial Pressures

In 2023, Social Security beneficiaries received an 8.7 percent increase in their checks due to the COLA, the largest in decades. However, the adjustment for 2024 was much smaller, at just 3.2 percent, translating to an average increase of about $50 per beneficiary. This modest increase has done little to ease the financial strain many seniors face, especially as the lingering effects of the pandemic continue to impact the economy.

The frustration among seniors is palpable. Financial literacy expert Alex Beene pointed out that inflation has hit everyday items particularly hard, leaving many retirees struggling to make ends meet. A survey by the Senior Citizens League supports this, with 93 percent of seniors reporting that their monthly household expenses had increased by more than $59, and 43 percent noting increases of over $185 per month.

These rising costs are especially tough for the nearly 25 million Americans aged 60 and older who live at or below 250 percent of the federal poverty level. For them, even the small increases in COLA aren’t enough to offset the financial pressures they face daily.

In summary, while SSI recipients will see two payments in August, it’s a reminder to plan carefully for the months ahead. Meanwhile, the broader challenges facing Social Security and the economic pressures on seniors continue to be a cause for concern. Policymakers must find a solution to ensure that this vital program remains sustainable for future generations.

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