It’s almost a given that retirement means you need to be aware of changes in Social Security 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. Below is a schedule of Social Security benefits payments for 2022.

KEY TAKEAWAYS

  • 50% of all Americans over 50 live in households where Social Security payments account for at least half their income. One-quarter of Americans rely on their monthly payment for their earnings for the majority or all of their income.
  • Social Security retirement, disability, and survivor’s benefits will be distributed depending on when a retiree was born. 
  • A total of 64 million Americans will be eligible for a 5.9% COLA beginning January 2022 to their Social Security retirement, disability, and/or survivors benefits. COLA will also affect SSI benefits. This is the largest cost of living adjustment in 39 years. 
  • The total average retirement benefit will rise to $1,657 per person and $2,753 for couples. The average monthly disability benefit payment will rise to $1,358; for disabled workers who have a spouse or one or more children, it will go up to $2,383. Widowers and widowers will see an average increase of $1,553 per month; disabled workers with a spouse and one or more children will see an increase of $2,383 per month. 
  • The maximum earnings subject to Social Security tax are also increasing to $147,000. Additionally, the earnings limit for beneficiaries still working but not reaching full retirement age is increasing to $19 560. Finally, the 5 earnings limit for beneficiaries who reach full retirement age by 2022 will increase to $51,960.

Understanding Social Security Payments

Social Security is also known as the Old Age, Survivors, and Disability Insurance program. It provides monthly monetary benefits for qualified workers and their dependents. This program is considered an entitlement. Employees, employers, and self-employed pay Social Security taxes to fund the benefits. These funds are then deposited into two Social Security Trust Funds. Three types of Social Security benefits are offered by the SSA:

  • Retirement: This benefit is for people aged 62 and older who have worked for at least 10 years. The amount of retirement benefits a person receives depends on the age they start receiving benefits and their pre-retirement income. The amount of retirement benefits a person receives depends on their pre-retirement salary and the age at which they begin collecting benefits.
  • Disability: Persons who are disabled and unable to work are eligible for Social Security Disability Insurance benefits (SSDI), provided they have worked for a minimum of a year. The work required depends on the individual’s age and the amount of their pre-disability income. SSDI, like retirement benefits, may be available to a spouse of a retired person (current or former). The monthly payment is based on the pre-disability salary.
  • Survivor: Benefits for widows and widowers as well as qualifying divorcing spouses and children of deceased workers/retirees are usually available. The worker’s salary, age at death, and survivor’s relationship to the deceased person will determine the benefit amount. Additional death benefit, which is a one-time payment of $255, is also available. This is paid to the spouse/children of a deceased individual.

Supplemental Security Income

The SSA also offers a fourth type of benefit, but it is not part of Social Security. The SSA also offers a fourth type of benefit, but it is not part of Social Security. Supplemental security income (SSI), which is funded by general tax revenues, is a need-based program that helps those with limited resources and income.

SSI benefits are available to adults and children with disabilities as well as those 65 years of age or older. Federal and state laws determine how much SSI benefits are awarded to retirees. These laws take into consideration their residence and who lives with them. 

Cost-of-living adversities

The cost of living is measured by the Department of Labor’s Consumer Price Index. Social security benefit rates increase in tandem with this index. The index is boosted due to higher inflation prices, which raises the cost of goods or services. These costs will be offset by increased inflation rates that increase the cost of goods and services.

The Social Security Act outlines a formula that allows COLAs to be based on CPI-W increases. A COLA is simply the percentage change in the CPI from the average of the third quarter of the current year to the average Q3 for the previous year. All increases must be rounded to the nearest tenth (1%) 

Retirement benefits management is an ongoing aspect of retirement life. Managing retirement benefits is an ongoing part of retired life. 

Payment Schedule for 2022

This is especially important for the 0.8% of beneficiaries who need to look out for a physical check each month. However, the remaining 99.2% should still know when their Social Security income will be deposited. This is particularly important for the 0.8% of beneficiaries who must be looking out for a physical check every month. However, the 99.2% of remaining beneficiaries should still know when their Social Security Income is being directly deposited to make sure they don’t spend more than they have. 16

For beneficiaries who started receiving Social Security benefits after May 1997, the distribution of their benefits, including survivors, disability, and retirement benefits, takes place on one of the three Wednesdays each month. The beneficiary’s birth date will determine when they receive their benefits.

  • If you were born between 1 and 10, you will receive Social Security payments every Wednesday.
  • If you were born between 11th and 20th March, your Social Security payments will be sent on the third Wednesday each month.

SSI benefits payments are paid on a different schedule. SSI benefits are generally distributed on the first day of each month. If the first day of a month falls on a weekend then the next payment date will be the Friday of that month. 2022: There will not be any SSI benefits payments in January, May, or October. Instead, beneficiaries will receive their payment at the end of April and September.

Exceptions to the Payment Schedule

In some cases, the default payment schedule may not be followed and Social Security benefits will be paid at a different time. These are the current exceptions:

  • Children and spouses receiving benefits based upon the work record of another person will receive payments on the same day that the primary beneficiary.
  • Individuals who receive Supplemental Security Income for disability, age, or blindness will also be paid. Payments are made on the 1st month.
  • Individuals whose payment dates fall on a Federal holiday weekend or holiday will receive their payments on the following weekday: 

Additionally, Social Security payments will be automatically issued to individuals who are:

  • You applied for benefits prior to May 1, 1997.
  • Supplemental Security Income payments are also available.
  • Get their Medicare premiums covered by the state in which they live.
  • You can live in another country. 

Delivery of payment

About a decade ago, the Social Security Administration started phasing out paper checks. Individuals who receive Social Security benefits now have several digital options.

Direct deposit is the first way to receive Social Security benefits. To sign up, individuals can visit their local branch of the Social Security office. Individuals must bring their social security number, routing a number of their financial institution, their account numbers, and account type (checking, savings, etc.).

Direct Express cards can be used to receive social security benefits. Direct Express cards are debit card that allows you to access benefits without having to open a bank account. The card is credited monthly with benefits. Individuals can also use it to make purchases. Direct Express cards can be used to make purchases at banks, ATMs, and credit unions.

SSI

5.9% COLA applies to approximately 8 million SSI benefits that are due and will start on December 30, 2021. 

What if your payment has not arrived yet?

Social security payments can sometimes be delayed for a variety of reasons. These reasons include, but aren’t limited to:

  • Requirements for Social Security Benefits Initial
  • Slowdowns in the Social Security Administration’s processing.
  • You can update your personal information, such as your postal address.
  • Modifications to your payment information, such as new checking accounts.
  • Weather conditions are severe or inclement.

It is a good idea to notify the Social Security Administration immediately if your Social Security payment is delayed. Contact your local SSA office to discuss delays that could be caused by changes to your personal information.

The SSA frequently issues notices regarding delays that collectively affect a region or a number of people. For example, the SSA might post updates about delayed payments in areas impacted severely by severe weather . For other delays that could impact others, please monitor SSA communication channels and media channels.

For non-emergency delays, it may be prudent to wait several business days. Even if benefits have not been received as expected, they may still be on their way and could be delayed temporarily by the bank, post office or SSA. You can contact the SSA whenever you feel it is appropriate. However, they may ask you to wait longer after receiving your payment receipt date in order to verify that the payment has indeed gone missing.

Notification

Workers who reach full retirement age for the whole year do not have to earn a maximum amount.

What Can Beneficiaries Expect in 2022

This is the largest cost of living adjustment in 39 years. It’s due to an inflation spike resulting from the ongoing economic difficulties caused by COVID-19. 

According to the SSA estimates, this will result in a $92 increase for the average retiree worker. This will raise their monthly benefits to $1657 per month by 2022. Couples will see an average benefits rise of $154 to 2,753 per month.

The monthly cost of disability benefits will rise from $76 to $1358 per month. The average $133 monthly increase for disabled workers who have a spouse or children will be $2,383 per person. Widows and widowers will see their average benefits increase by $86 to $1553 per month. The average $178 increase in monthly benefits for widowed mothers with at least two children will be $3,187 to 4

Other than the COLA, many other important changes to Social Security will take effect in 2022.

  • The maximum earnings that are subject to the Social Security Tax, also known as the taxable maximum will rise to $147,000
  • For workers who retire earlier than their full retirement age, the earnings limit will rise to $19 560. For every $2 earned over $19,560, will be able to deduct $1 from their benefits.
  • For beneficiaries still employed, the earnings limit will rise to $51,960 when they reach full retirement age. Recipients who earn more than this limit will be entitled to $1 in benefits for each $3 they earn above $51,960, until their full retirement age.
  • 21 The retirement age for Social Security will increase by two months per year until it reaches 65 for those born in 1960 or later. The full retirement age is 66 and 10 for anyone who turns 62 in 2021.
  • The credit-earnings threshold for 2022 will rise from $40 to $1.510 per credit. 

What is the Social Security Payout Schedule 2022?

Social security benefits will be paid on the third, fourth, or fifth Wednesdays of every month. 2

What will the 2022 Cost of Living Adjustment (COLA), for Social Security be?

3

What will the cost of Social Security Disability Insurance (SSDI), in 2022 be?

In 2022, SSDI benefits payments will increase an average of $76 to $13,358 per month for disabled workers. In 2022, SSDI benefits payments will increase by an average of $76 to $1,358 per month for all disabled workers. 

What time does the Social Security Administration (SSA), distribute Supplemental Security Income?

Individuals born before May 1997, or who receive Social Security and SSI will be issued a check by the SSA every third day. 

Is Social Security Paying a Month Ahead or Behind?

Social security benefits are paid the following month. Social security benefits paid in January, for example, are paid in February.

The bottom line

There are many rules and information to keep in mind when it comes to Social Security. Even small mistakes can have a significant impact on your retirement life. You shouldn’t accidentally spend more than you should on your weekly budget, thinking that your monthly Social Security benefits were already deposited. This is why you might want to mark your personal calendar with the relevant dates.