When it comes to managing your life as a retiree, it almost goes without saying that you'll need to keep abreast of the yearly Social Security tweaks and adjust your budget accordingly. However, with so much new information to keep track of, it can be easy to forget some of the smaller details, such as when benefit payments are distributed—especially considering that this answer isn't exactly clear-cut and varies from person to person. As such, we have put together a Social Security benefits payment schedule for 2023, which can be found below. Show
Key Takeaways
Understanding Social Security PaymentsSocial Security, officially known as the Old-Age, Survivors, and Disability Insurance (OASDI) program, provides monthly monetary benefits to qualified workers and their dependents (if any). It's considered an “entitlement” program, wherein employees, employers, and the self-employed finance these benefits with their Social Security taxes, which are then put into two Social Security trust funds. Eligibility and benefit amounts are based on an individual's contributions to Social Security and work history (or that of their spouse/parent(s)). The SSA offers three types of Social Security benefits:
Supplemental Security IncomeThere is a fourth kind of benefit made available by the SSA, though it isn't part of Social Security. Financed by general tax revenues, Supplemental Security Income (SSI) is a needs-based program designed to help those with limited income and resources who are unable to earn sufficient wages on their own. Adults and children with disabilities, as well as individuals 65 or older, are eligible to receive SSI benefits. The amount retirees are given depends on federal and state laws, which take into account their place of residence, who lives with them, and their other sources of income. No work credits are required, and those with enough work history may be eligible for both SSI and Social Security benefits. Cost-of-Living AdustmentsSocial Security benefit rates rise in tandem with the cost of living, as measured by the Department of Labor’s Consumer Price Index (CPI-W). This index is boosted by increased inflation rates that raise the cost of goods and services. To offset these costs and ensure the purchasing power of Social Security benefits isn't eroded by inflation, the SSA will issue what's known as a cost-of-living adjustment (COLA). According to a formula outlined in the Social Security Act, COLAs are based on increases in the CPI-W. Specifically, a COLA is equal to the percentage increase in the CPI-W from the average for the current year's third quarter to the average for Q3 of the prior year in which a COLA was enacted. Increases must be rounded to the nearest tenth of 1%. Should there be no increase, or if the end result rounds to zero, no COLA is issued for that year. SSAManaging retirement benefits is an ongoing part of retired life. Therefore, it's important to understand what you’re entitled to, stay up to date on program changes, and make certain the SSA has your current
information. Payment Schedule for 2023Approximately half of older Americans reside in households where Social Security benefits compose a least 50% of their income, and 25% of this group depend on their monthly payment for the majority (if not all) of their earnings. As such, it's important for retirees to be aware of when they will be receiving their benefits. While this is especially crucial to the 0.8% of beneficiaries who need to be on the lookout for a physical check each month, the remaining 99.2% still ought to know when their Social Security income is being direct deposited to ensure they aren't spending more money than they actually have. Social Security retirement, disability, and survivors benefits all are distributed on one of three Wednesdays each month for beneficiaries who began receiving benefits after May 1997. When a beneficiary will receive their payments depends on their birth date, as described below:
SSI benefit payments follow a different schedule. Specifically, SSI benefits are distributed on the first of each month. Should the first of the month fall on a weekend, then the new payment date will be the last Friday of the prior month. For 2023, there will be no SSI benefit payments in January, April, July, and October, while beneficiaries will receive their payments at both the beginning and end of March, June, and September. Exceptions to the Payment ScheduleThere are several cases where the default payment schedule isn't followed and Social Security benefits are paid at a different time. The current exceptions include:
In addition, Social Security payments will automatically be issued on the 3rd of each month to individuals who:
Getting Your PaymentsThe Social Security Administration began phasing out paper checks roughly a decade ago. Social Security benefits are now issued electronically. Individuals receiving benefits have a few digital options. First, Social Security benefits can be distributed via direct deposit. Individuals can visit their local branch or contact their Social Security office to sign up. Individuals should be prepared to present their Social Security number, their financial institution's routing number, their account number, and their account type (checking or savings). Social Security benefits can also be awarded via a Direct Express card. A Direct Express card is a debit card that can be used to access benefits without the use of a bank account. Monthly benefits are deposited directly to the card, and individuals can use the card to make purchases. The Direct Express card can also be used at ATMs, banks, or credit unions to get cash. The 8.7% COLA also applies to the approximately 8 million SSI payments that go out and will begin on Dec. 30, 2022. Some beneficiaries will receive both Social Security and SSI benefits. What If Your Payment Hasn't Arrived Yet?For several reasons, Social Security payments may sometimes be late. Those reasons can include but are not limited to:
If your Social Security payment is late, contact the Social Security Administration immediately. For delays potentially caused by changes in your personal information, contact your local SSA office. The SSA often issues notices of delays that collectively impact a region or number of individuals. For example, the SSA may post updates on delayed payments in areas affected by severe weather. For delays potentially impacting other individuals, monitor SSA communication and media channels. Consider waiting a few business days for non-emergency delays. Benefits, though not yet received when they should have arrived, may already be in transit and late due to the post office, bank, or SSA.Do contact the SSA when you feel it's appropriate, recognizing that it may request that you wait longer to ensure payment has truly gone missing. Workers who have reached full retirement age or older for the entire year are not subject to a limit on earnings. What Beneficiaries Can Expect in 2023On Oct 13, 2022, the Social Security Administration (SSA) announced its annual changes to the Social Security program for 2023. Starting Jan. 1, 2023, more than 65 million Americans will receive n 8,7.% COLA to their Social Security benefits. This represents the largest cost-of-living adjustment since 1981, due to a spike in inflation resulting from ongoing economic difficulties caused by the COVID-19 pandemic. In 2022, the increase was 5.9% and, previous to that, COLA averaged just 1.65% per year over the prior 10 years while inflation remained low. According to estimates released by the SSA, this increase will amount to more than $140 for the average retired worker, raising their total benefits to $1,827 per month in 2023. Couples, meanwhile, will experience an averagebenefits increase of $238 to $2,753 per month. Disability benefit average payments will increase $119 to $1,483 per month. Disabled workers with a spouse and one or more children will experience an average$133 increase to $2,972 per month. Lastly, widows and widowers will find their averagebenefits increasing by $209 to $2,616 per month. Notably, widowed mothers with a minimum of two children will receive an average$282 increase to $3,520. In addition to the COLA, several other major Social Security changes will go into effect in 2023:
What Is the Social Security Payout Schedule for 2023?Social Security benefits will be paid on either the second, third, or fourth Wednesday of each month. Which of these three is chosen will depend on the day of the month when a retiree was born. What Will the 2023 Cost-of-Living Adjustment (COLA) for Social Security Be?Beginning in January 2023, a 8.7% COLA will increase Social Security benefits for more than 65 million Americans. Skyrocketing inflation amid ongoing economic difficulties caused by the pandemic have resulted in the largest cost-of-living adjustment in 41 years. How Much Will Social Security Disability Insurance (SSDI) Be in 2023?SSDI benefit payments will increasean average of $119 to $1,483 per month for all disabled workers in 2023. Meanwhile, those with a spouse and one or more children will benefit from an average $209 increase to $2,616 per month. When Does the Social Security Administration (SSA) Distribute Supplemental Security Income (SSI)?Individuals who were born prior to May 1997—or receive both Social Security and SSI—will receive a payment for Social Security on the third day of each month. Should the third of the month be a weekend, payments will instead be issued on the first Friday of that month. Payments for SSI (if applicable) will arrive on the first day. Does Social Security Pay a Month Ahead or a Month Behind?Social Security benefits are paid in the month following the month in which they are due. For example, the payment for Social Security benefits awarded in January are paid in February. The Bottom LineWhen it comes to Social Security, there are many rules and much detailed information to be mindful of. Even minor mistakes can have a noticeable impact on your life in retirement. Accidentally overspending on your weekly budget because you thought your monthly Social Security benefits had already been deposited shouldn't be something you have to worry about, so consider marking the appropriate dates listed here on your calendar . |