Social Security Payments and Future Adjustments

Social Security recipients across the nation will receive their monthly payments this week. Over 75 million Americans benefit from the Social Security Administration (SSA), which includes retirement, spousal, survivor, and disability payments. These payments occur monthly as a single sum.

Social Security payments are generally scheduled based on a beneficiary’s birth date. Individuals born between the 1st and 10th of the month receive payment on the second Wednesday. Those born from the 11th to the 20th are paid on the third Wednesday, while birthdays from the 21st to the 31st receive payments on the fourth Wednesday. Exceptions apply, and those who began receiving Social Security before May 1997 or those receiving both Social Security and Supplemental Security Income (SSI) typically receive their payment on the 3rd of the month; SSI is paid on the 1st of the month. If a payment date coincides with a weekend or holiday, payments occur earlier on a business day.

This week, payments are scheduled for Wednesday, August 19, targeting individuals born between the 11th and 20th. A subsequent round follows on Wednesday, August 26 for those born between the 21st and 31st. The SSA advises beneficiaries to wait an additional three working days if payments are not received as expected before contacting them.

Retirement benefits depend on the claimant’s earnings record and the age they start payments. Benefits can begin at age 62 but result in a lower payment than waiting until full retirement age or later. Most workers need 40 Social Security credits to qualify for benefits. With a maximum of four credits earned annually, this eligibility usually requires about ten years of work.

In 2026, an individual who consistently earned the maximum Social Security taxable income could receive approximately $4,152 a month if they claim at full retirement age. Beginning benefits at age 62 reduces this to about $2,969, while delaying until 70 increases it to roughly $5,181 monthly. However, most retirees receive less, with the average monthly retirement payment at $2,085.98 as of July this year.

Larger COLA Forecast for 2027

Social Security benefits adjust annually through the cost-of-living adjustment (COLA) to help beneficiaries maintain purchasing power amidst price rises. The upcoming COLA percentage will be finalized in October, with estimates being revised due to recent inflation.

The Senior Citizens League (TSCL), a nonpartisan group for seniors, forecasts a 3.6 percent Social Security COLA for 2027. This is lower than its earlier 3.8 percent prediction but remains above the 2.8 percent increase this year. With a projected 3.6 percent increase, TSCL estimates the average payment could rise by $69.75, from $1,937.53 to $2,007.28.

AARP has similarly adjusted its forecast to expect a 3.5 percent COLA for 2027, down from 3.6 percent. These updates follow the Bureau of Labor Statistics’ latest inflation data, with the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rising 3.4 percent over 12 months as of July. This figure influences Social Security because it is the initial reading used to calculate COLA for 2027.

According to Nic Puckrin, CEO of Coin Bureau, the July CPI print softens expectations, suggesting a COLA range between 3.6 and 3.8 percent. However, August and September CPI-W data could shift projections if geopolitical tensions keep oil prices high. Should the CPI-W decline, the COLA might be lower, possibly indicating an easing of the cost-of-living crisis.