Social Security is the largest U.S. government program, costing about $1.24 trillion a year, but it’s by no means a handout! Funded by payroll deductions, your Social Security benefits are the fruit of your hard-earned labor over many years. Despite all the hype about the program running out of money, the United States government has reliably met its obligations to retirees for the past 89 years. 

To help you plan your budget we’ve gathered some information from the Social Security Administration and the AARP about the scheduled dates for July 2024 benefit payments. While rare, overpayments or underpayments do happen now and then, so we’ve also included some information about how to get those kinds of mistakes corrected as quickly as possible.

Your Social Security Administration

The United States Social Security Administration is the Federal agency that handles Social Security payments. Social Security started during the Great Depression as part of the New Deal to help retirees, widows and widowers, dependent children, and people with disabilities have the basic income they need to survive. It also provides supplemental income for those who are in the most dire financial circumstances. 

Where the $ Comes From and Goes

Workers and their employers each pay 6.2 percent of wages into the program, up to a maximum taxable wage of $168,600. People who are self-employed pay the entire 12.4 percent themselves. Social Security funds are held in special U.S. Treasury securities that can be redeemed at any time for their face value, so the money is always secure, and always accessible when needed to pay benefits. 99% of the money Social Security spends each year goes to pay benefits to about 71 million people. Depending on how much a worker paid into the system over the years and how old they are when they retire, they may receive more or less income, but the average monthly benefit is about $1,767. 

Available Benefits

Social Security benefits are not distributed automatically when you reach retirement age; you must apply for them. These are the benefits you may be entitled to: 

• Retirement – Monthly retirement benefits can start as early as 62 or as late as 70. Waiting longer to start your benefits will increase the amount you’re paid each month. 
• Social Security Disability Insurance (SSDI) – People who have a disability that prevents them from working for a year or more may be able to receive disability payments. 
• Survivors benefits – When a loved one passes away, their spouse and other dependents may be able to draw survivors benefits based on the years they have paid payroll taxes into Social Security.
• Supplemental Security Income (SSI). Some people with disabilities and seniors 65 or older have especially difficult financial circumstances. Many of them qualify for SSI to pay for food, clothing, medicine, housing, and other essential expenses.

July 2024 Payment Dates

The Social Security Administration publicizes benefit payment dates for the year at: Schedule of Social Security Benefit Payments 2024. Don’t panic if your payment isn’t deposited exactly on the publicized date, though. There may be a problem on your bank’s end. Contact them to see if they know the reason for a delay in posting your Social Security benefits. If not, then wait 3 days before you contact the Social Security Administration to straighten it out.

Retirement and Disability Payments

You can know when retirement and disability benefits are paid based on your birthday (or the birthday of your deceased spouse or parent whose benefits you are drawing upon). 

• July 10: Beneficiaries born between the 1st and the 10th
• July 17: Beneficiaries born between the 11th and 20th. 
• July 24: Beneficiaries born between the 21st and the 31st

Retirement Benefit – Exception to Payment Date

In some situations, you will have a different payment date. This applies to you if you live overseas; you participate in a Medicare Savings Program; you started your benefits before May 1997; or you are receiving Supplemental Security Income as well as Social Security retirement benefits. If any of these applies to you, you can expect your retirement benefit to be paid on the 3rd of the month. So circle July 3 on your calendar.

Supplemental Security Income (SSI) Benefits

SSI pays its benefits on the first day of every month. If that day falls on a weekend, payments are sent on the previous Friday. This month, they will be paid on Monday, July 1, 2024. 

Why Do They Have So Many Dates?

If all these dates seem like an example of the government making things needlessly complicated, it’s actually not. By the late 1990s, the number of beneficiaries had grown so large that it was unwieldy for the SSA to try to pay everyone all on one date each year. So, in June 1997, they began paying retirement benefits on three different dates each month, but they kept the 3rd day of the month for everyone who had already started drawing benefits before May 1, 1997. 

Incidentally, the SSA no longer issues paper checks. That was completely phased out in 2013, and now everyone is required either to have their benefits directly deposited to a bank account or to a DirectExpress debit card. This is a great improvement to prevent checks from being lost or stolen and to get the money to you quicker. 

Mistakes Do Happen . . . 

According to the Social Security Administration, the accuracy rate of benefit payments is 99.9%. Your chances of being in that 0.1% are 1 in a thousand. But given the size of the program, that’s still a lot of misdirected money. In 2022, for example, the SSA overpaid some people by a total of $11.1 billion and underpaid others by $2.5 billion. 

How does this happen? Computational errors or relevant information not being reported by the beneficiary or acted upon by the SSA are the main sources of errors. If you appeal a decision about your benefit amount, the inaccurate amount will continue to be paid until the SSA makes a final decision in your case. 

Correcting Mistakes

Your first step if you think you’re being paid incorrectly is to get in touch with the Social Security Administration at (800) 772-1213 or schedule an appointment at one of their offices. Mistakes can be corrected up to 3 years, 3 months, and 15 days from the tax year when the mistake occurred. This helpful guide from the SSA will help you through the process, but next are some key points to keep in mind.

If You Are Paid Too Much

You have to pay back overpayments. This could add up to a lot of money if it has been happening for a while. The government will try to collect the repayment by withholding up to 10% of your benefits going forward until it is paid off or by garnishing your wages and income tax returns. It’s better for you to be proactive, reach out to them and set up a payment plan, which can be up to 5 years long. It’s possible sometimes to get a waiver of the entire debt if you can demonstrate it was not your fault and you cannot possibly repay it. To apply for a waiver, file Form SSA-632.

If You Are Not Paid Enough

One of the most common reasons benefit checks are less than you expect is that the SSA does not have accurate information about your earnings and circumstances. You can check what they have on you by setting up a My Social Security account at the SSA website. If you find mistakes in your earnings record there, gather supporting evidence like W-2 forms, tax returns, and pay stubs to support your case and make an appointment to visit a Social Security office.  

Although the Social Security Administration is understaffed, they do their best to serve citizens efficiently and helpfully. If you have any problems, work through them with patience and persistence to make sure you get all the benefits you’ve worked so hard for, for so many years. 

 

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