Social Security beneficiaries typically receive one payment per program they belong to each month, but in August, some beneficiaries will notice an exception to this routine. Those who receive Supplemental Security Income (SSI) will receive two payments in August to ensure timely distribution of benefits.
The first payment is scheduled for August 1, and the second for August 30, and while this is very common, it is not entirely uncommon as the second check is actually an early payment for September. This adjustment is made because September 1 falls on a weekend this year, and as the Social Security Administration (SSA) explained in a 2022 blog post, “We do this to avoid putting you at a financial disadvantage and to make sure you don’t have to wait beyond the first of the month to get your payment. This does not mean that you received a duplicate payment in the previous month, so you do not need to contact us to report the second payment.”
This system occasionally results in SSI recipients receiving more than one payment in a month due to the calendar, but it also means that recipients cannot get too overconfident with their finances because they will not receive another payment until October 1.
This schedule adjustment mostly affects those on SSI; very few regular Social Security beneficiaries will see any changes to their payment schedules in August. SSI benefits are available to adults and children who are disabled or blind, and to individuals age 65 and older. As of June, nearly 7.4 million people were receiving these monthly benefits, which are completely separate from retirement benefits or other disability programs administered by the SSA.
Fate of Social Security
Looking ahead, there is considerable concern about the future of Social Security. Seniors and people with disabilities who rely on these payments, as well as those who contribute to the system, are increasingly worried as analysts warn of a potential funding crisis. Current projections suggest that the program could become insolvent by the mid-2030s if congressional inaction continues, which could result in reduced payments to seniors.
Various policy proposals have been proposed on both sides of the political aisle to address this looming problem, including raising the retirement age, taxing the wealthy, or reducing benefit levels. However, these proposals are generally unpopular with the American public and Republican lawmakers. Despite these challenges, Social Security benefits are adjusted annually for inflation through the cost-of-living adjustment (COLA) to try to help seniors not lose purchasing power. Despite these efforts, beneficiaries have long argued that these adjustments are not enough to keep up with the rising costs of health care, food, and housing, and that reducing benefits would only make them worse off.
In 2023, beneficiaries saw an increase of up to 8.7 percent in their checks due to the COLA, but the adjustment for 2024 was significantly lower at 3.2 percent, which translates to an increase of about $50 for most beneficiaries. This modest increase has done little to alleviate the financial pressures many seniors face, especially after all the side effects of the pandemic.
Alex Beene, a financial literacy instructor for the state of Tennessee, stated in an interview with Newsweek, “You can feel the frustration among seniors when you walk into a grocery store. Some of the items most affected by inflation are everyday purchases that they didn’t expect to see skyrocketing prices in retirement.”
And he’s not alone in his analysis; a survey conducted by the Senior Citizens League earlier this year highlighted this issue, revealing that seniors are still grappling with price increases on nearly every household item. In 2023, 93 percent of senior respondents reported that their household expenses had increased by more than $59 per month, with 43 percent noting that their expenses had increased by more than $185 per month.
For seniors trying to manage tight finances, these increases can be devastating. According to the National Council on Aging, approximately 25 million Americans age 60 and older live at or below 250 percent of the federal poverty level.
“The increases are there, but there’s a general feeling that they’re not substantial enough, and it’s easy to see why,” Beene added, reflecting a widespread sentiment among seniors that COLA adjustments don’t adequately address the rising cost of living.
