Social Security benefits follow a fairly strict and regulated schedule, designed to ensure that all beneficiaries receive their payments on time and do not fall behind on any of their bills.
Many studies have shown that many Americans cannot afford a $400 unexpected expense, and this is especially true for individuals on a fixed income with little to no savings, as is the situation for the majority of Social Security beneficiaries.
When we talk about Social Security, most of us assume (correctly) that we are talking about retirement benefits, but the Social Security Administration (SSA) is in charge of administering five programs: retirement, family, survivor, disability, and Supplemental Security Income (SSI), and while each has its own set of qualifications, the schedule for all of them is fairly straightforward and nearly set in stone.
This explains why months like December may be so difficult for retirees. The holidays cause modifications to the timetable, which, while expected, can confuse many beneficiaries who are unaware how the schedule works or relates to them.
Social Security Calendar
As previously noted, it appears that the Social Security calendar is established in stone. Benefits are paid in three categories and the overall rule is:
- SSI payments: paid for all beneficiaries on the first of every month. This is the only payment that is compatible with other Social Security benefits which is why it is in a separate category.
- Retirement, family, survivor or disability payments for beneficiaries that started receiving benefits before May 1997. These are distributed on the third of every month.
- Retirement, family, survivor or disability payments for beneficiaries that started receiving benefits before May 1997. Those are distributed on different dates through the month based on a birth date schedule. As a general rule, recipients whose birthdays fall on 1st-10th of the month will receive their benefits on the second Wednesday of any given month, those born on 11th-20th will receive payouts on the third Wednesday, and those with birthdays on 21st-31st will see their payments on the fourth Wednesday.
But, given the schedule appears to be so rigid, what could jeopardize benefits? Weekends and national holidays are the first things that disrupt any calendar.
The Social Security Administration can only distribute benefits on days when banks are open and the United States Postal Service distributes mail, which means that if a payment date falls on a weekend (as it does on the first and third of each month) or a holiday, the benefit must be distributed in advance to avoid delays and economic impact on beneficiaries.
The December distribution schedule
Given the many changes that a month as complex as December might offer, it is critical to understand the full distribution schedule:
- November 29: Which this year was black Friday (not a National Holiday, contrary to popular belief, if it was shops would not be open to accommodate the shopping sprees) saw the SSI payment for the month of December. This is because the 1st of the month fell on a Sunday.
- December 3: This benefit payment for all who started receiving benefits before May 1997 went out without change.
- December 11: This benefit payment for those born between the 1st and 10th of any month and started after May 1997 also went out as planned.
- December 18: This benefit payment for those with a birthday between the 11th and 20th of any month and who became beneficiaries after May 1997 will go out later this week as scheduled.
- December 24: This benefit payment for those born between the 21st and 31st of any month, beneficiaries after May 1997. The payment should be distributed on the 25th, but that is Christmas Day, and thus a National Holiday. This means that the payment is delivered in advance to ensure that beneficiaries are not negatively affected by any potential delays.