Alert: Social Security beneficiaries may find themselves with a little extra money in their pockets this week. Some Americans will receive two Social Security payments this week on March 1st, 2024, due to a quirk in the system.
Why the Double Payment?
Payments are normally sent out by the Social Security Administration (SSA) on the second, third, and fourth Wednesdays of every month. However, Supplemental Security Income (SSI) recipients will receive both their February and March payments on the same day because March 1st falls on the fourth Wednesday of February. This affects roughly 7. 4 million SSI recipients.
It’s Not Extra Money, Just an Early Payment
Don’t get too excited just yet! This double payment doesn’t mean you’re getting extra money. It’s simply an early payment for the following month. This will happen again twice more this year, in August and November, according to the SSA’s payment schedule.
Cost-of-Living Adjustment (COLA) and Financial Struggles
Retirees received a modest 3.2% COLA this year which many found insufficient to keep up with rising inflation. A recent survey by Atticus found that 62% of seniors collecting Social Security are dissatisfied with the increase. Nearly three in five seniors reported struggling financially due to the high cost of everyday necessities.
What to Do with the Extra Payment?
If you’re receiving the double payment, consider using it wisely. Here are a few ideas:
- Catch up on bills or expenses: If you’re behind on bills or have outstanding expenses, this could be a good opportunity to get caught up.
- Build your emergency fund: Having a solid emergency fund can provide peace of mind and help you weather unexpected expenses.
- Invest for the future: Consider investing the extra money for your future needs, such as retirement or healthcare.
- Donate to a worthy cause: If you’re feeling generous, you could donate the extra money to a charity or cause you care about.
Stay Informed and Manage Your Finances Wisely
It’s important to stay informed about changes to Social Security and other government benefits that may impact your finances. You can find more information on the SSA website or by contacting your local Social Security office. By managing your finances wisely, you can make the most of your Social Security benefits and ensure a secure financial future.
Here’s why some Social Security recipients will receive two checks this week
Due to a glitch in the system, some Americans will receive two Social Security payments this week—a rare occurrence.
The Social Security Administration normally only distributes one payment per week, with checks arriving on the second, third, and fourth Wednesdays of each month. Then, unless it falls on a weekend or holiday, it pays Supplemental Social Security Income on the first of each month, which supports elderly Americans with low incomes and disabled persons.
Due to March 1 falling on the fourth Wednesday of February, some people on SSI will get paid for both this week. That means roughly 7. 4 million SSI recipients will get their March payments on Friday, March 1.
To be clear, the consecutive deposits are simply an early payment for the following month; they do not indicate that retirees are receiving additional funds.
This is slated to happen two more times this year, in August and November, according to a schedule of payments on the Social Security Administrations website.
Although retirees saw a slight increase in their standard of living this year, many have reported finding it difficult to make ends meet as a result of persistently high inflation, which has quickly reduced their purchasing power.
A recent survey published by Atticus found that an overwhelming percentage of seniors collecting Social Security — about 62% — are dissatisfied with the 3.2% payment increase theyre receiving in 2024.
Actually, almost three out of five seniors reported financial difficulties because the cost of basic necessities like food, rent, and medical care continues to be uncomfortably high, and approximately 2020% of seniors receiving social security plan to look for work this year due to the slight increase.
Retirees reported concerns over rising utility, insurance, heating and food costs.
More than 66 million Americans collecting Social Security received the bigger payments beginning in January.
The payment boost marked a steep decline from 2023, when recipients received an 8. 7% bump, the highest in four decades. However, it remains higher than the 2. 6% average increase recorded over the past two decades.
An increase of this magnitude raised the average retiree benefit of $1,907 by about $59 per month.
The consumer price index for Urban Wage Earners and Clerical Workers, or CPI-W, from July, August, and September is used to calculate the annual Social Security change.