It’s common knowledge that relying only on Social Security for retirement is a bad idea. And that guidance is sound.
If you make the average wage, Social Security will only replace around 40% of your pre-retirement income, and seniors typically require a greater level of replacement income to live comfortably.
Social Security Distribution of Payments
In addition, if Social Security benefits are decreased in the future, the 40% level might not be applicable for a little more than ten years.
In less than a week, the third and last wave of April’s three Social Security retirement benefits, totaling up to $4,555, will be distributed.
Those who were born between the 21st and the 31st of a month will receive the final payment on April 26.
Every month, the payments are made on the second, third, and fourth Wednesdays; the week in which the payment is made falls within the 10-day period of the month in which the recipient was born.
Retirement beneficiaries who were born between the first and tenth of the month received the first payout, which was made on the second Wednesday of the month.
According to the SSA’s schedule, the second wave was distributed on April 19, the third Wednesday of April, and it was for people who were born between the eleventh and twentieth of a month.
Depending on their age at retirement, each person receives a different amount of money.
A maximum check of $3,627 is given to recipients who retired at the current retirement age of 67.
Read more: Social Security: Five-Year Rule For Tax Payment And Eligibility Explained
Distribution of Payments
According to the SS Administration, those who delay retiring until age 70 receive the greatest monthly benefit of $4,555 while those who retire at age 62 receive up to $2,572.
If Congress does not decide how to fund the program by 2037, people may experience a reduction in their payments.
For years, Congress has debated the future of benefits, and lately, experts warned that if nothing is done, the program may run out of money in ten years.
Certainly not in the finest of financial health is Social Security.
However, it’s crucial to understand that the program will continue to support you in some way after you’re ready to begin receiving the benefits you’ve earned.
Additionally, there is nothing wrong with relying on the program for a portion of your income as you get older.
Read more: Social Security Latest Proposal Would Result In More For Everyone And No One Getting Less