Social Security benefits provide essential support to millions of Americans in retirement. Recently, rumors have been circulating about a supposed 25% increase in benefits payments for November 2024.
However, while there are ways to maximize benefits, the Social Security Administration (SSA) has not announced a specific 25% increase for this month. Let’s clear up the details and understand how Social Security works, when to claim benefits, and how to optimize your payout.
Social Security Payment Schedule and How Timing Impacts Benefits
Your Social Security payment amount largely depends on the age at which you start collecting benefits. Although you’re eligible to start claiming as early as age 62, waiting until your Full Retirement Age (FRA)—or even longer—can significantly increase your monthly check.
For those born in 1960 or later, the FRA is 67, while individuals who delay benefits until age 70 can receive up to 124% of their Primary Insurance Amount (PIA).
Below is an outline of how benefit amounts change depending on your start age and birth year:
| Birth Year | Age 62 | Age 67 (FRA) | Age 70 |
|---|---|---|---|
| 1943-1954 | 75% | 100% | 132% |
| 1955 | 74.2% | 98.9% | 130.7% |
| 1956 | 73.3% | 97.8% | 129.3% |
| 1957 | 72.5% | 96.7% | 128% |
| 1958 | 71.7% | 95.6% | 126.7% |
| 1959 | 70.8% | 94.4% | 125.3% |
| 1960 or later | 70% | 93.3% | 124% |
Payment Dates for November 2024
November benefits will be deposited on the following dates based on recipients’ birthdays:
- November 13, 2024: Birthdays on the 1st–10th
- November 20, 2024: Birthdays on the 11th–20th
- November 27, 2024: Birthdays on the 21st–31st
For most retirees, monthly payments are deposited on the second, third, or fourth Wednesday, depending on birthdates, to simplify SSA’s distribution.
Can You Really Boost Your Benefits by 25%?
A direct 25% boost to Social Security benefits is unlikely unless there is a Cost of Living Adjustment (COLA) of that magnitude, which would be announced annually by the SSA.
For 2024, the announced COLA is 3.2%, following an 8.7% increase in 2023. A 25% increase may be possible over time if you delay taking benefits past your FRA.
For instance, delaying from age 67 to 70 can yield an increase of approximately 24% due to delayed retirement credits.
Calculating Your Social Security Benefits
The SSA calculates your PIA based on your 35 highest-earning years, adjusted for inflation. This calculation considers:
- Earnings History: Your 35 highest-income years.
- Retirement Age: Claiming early results in reduced monthly checks, while delaying increases your benefit.
- Cost of Living Adjustments (COLA): Annual adjustments to counteract inflation.
Understanding these factors can help optimize your Social Security income.
Pros and Cons of Claiming Early
Claiming Social Security before FRA reduces your monthly payout. Some retirees regret starting benefits early as they see the value in higher checks that come with delaying benefits.
However, for those who need the income or have a shorter life expectancy, claiming early can still make sense.
In contrast, delaying your claim until age 70 maximizes your monthly check, as SSA increases benefits by approximately two-thirds of 1% for each month you wait beyond FRA.
The Impact of Benefit Suspension
If you claimed Social Security early but now want a higher payout, you could suspend your benefits once you reach FRA. Suspending benefits allows you to earn delayed retirement credits until age 70, effectively increasing your monthly benefit amount. Keep in mind:
- Dependents: No family members (except ex-spouses) can collect on your record if your benefits are suspended.
- Medicare: You’ll need to pay Medicare Part B premiums out of pocket during the suspension.
Avoiding Misinformation on Social Security Increases
It’s essential to verify Social Security benefit changes through official sources. Unverified claims, like the rumored 25% increase, often spread through social media but lack substantiation. The SSA provides up-to-date information on COLA adjustments and other changes directly on their website.
Staying informed through official sources helps retirees plan accurately and avoid falling for misinformation.
