5 Things to Know About Your October Social Security Payment

If you depend on Social Security to make your retirement income go further, there are a few details to keep in mind before your October payment arrives. Your deposit date is tied to your birthday and the type of benefits you receive, and one schedule change this month may surprise some recipients.

There is also the broader question many beneficiaries ask: how does the Social Security Administration (SSA) determine benefit amounts, and how does your payment compare with what others receive? Here’s a look at what to expect from your October Social Security check, including timing, average benefit levels and a Medicare cost change that affects many retirees.

Your payment date is based on your birthday

The SSA spaces out retirement and Social Security Disability Insurance (SSDI) payments throughout the month according to date of birth, so not everyone is paid on the same day. The schedule for the month is as follows, based on the SSA’s published payment calendar:

Born on the 1st through the 10th: payment arrives on the second Wednesday. Born on the 11th through the 20th: payment arrives on the third Wednesday. Born on the 21st through the 31st: payment arrives on the fourth Wednesday.

This staggered system has been in place for years and repeats each month, so once you know your payment group, the weekly timing usually stays the same.

SSI and older filers follow a different schedule

Supplemental Security Income (SSI) recipients are not part of the birthday-based schedule. SSI payments are generally issued on the first day of each month. In this case, the 1st falls on a business day, so SSI checks are expected to go out as usual on October 1, according to the SSA.

Another group is paid earlier in the month: people who began receiving Social Security benefits before May 1997, along with those who get both SSI and Social Security, also known as concurrent or dual beneficiaries. That payment normally arrives on the 3rd of the month. Because that date falls on a weekend, the SSA moves the payment to the previous business day, Friday, October 2.

The main schedule change is a weekend adjustment

There is no federal holiday in October that disrupts the Wednesday payment pattern, so the second, third and fourth Wednesday dates should go forward as normal. The only change is the payment that would normally be issued on the 3rd, which shifts to October 2 because of the weekend. That follows a standard SSA rule: when a scheduled payment date lands on a Saturday, Sunday or federal holiday, the payment is sent on the last business day before that date.

If your payment does not arrive when expected, the SSA advises waiting three additional mailing days before contacting the agency. After that, you can check your bank account, confirm your direct deposit details through your personal my Social Security account or call the SSA directly at 1-800-772-1213.

How the SSA determines your benefit amount

Your monthly benefit is not the same for every retiree. It is calculated from your own earnings record using a formula that applies to nearly all beneficiaries.

The SSA reviews your 35 highest-earning years, adjusts those earnings for wage growth over time, averages them into a figure known as your Average Indexed Monthly Earnings (AIME), and then applies a formula to arrive at your Primary Insurance Amount (PIA), which is the benefit you receive at full retirement age (FRA). For people born in 1960 or later, FRA is 67, according to the SSA.

When you claim matters a great deal. Filing as early as 62 permanently lowers your monthly benefit compared with waiting until FRA. Delaying beyond FRA earns delayed retirement credits worth about 8% per year until age 70, when those credits stop. Beneficiaries who are already receiving payments also get an annual cost-of-living adjustment (COLA), which is designed to help benefits keep pace with inflation.

What average and maximum benefits look like now

It helps to see how your own check compares with the national picture. According to the SSA’s COLA fact sheet, the estimated average monthly benefit for all retired workers is $2,071 after the 2.8% COLA that took effect this year. Other average figures from the same fact sheet include $3,208 for an aged couple where both receive benefits, and $1,919 for a surviving spouse living alone.

At the high end, the SSA’s maximum-benefit guidance shows that a worker retiring this year could receive up to $2,969 per month at age 62, $4,152 per month at full retirement age, or as much as $5,181 per month by waiting until age 70. That top figure is only available to people who earned at or above the Social Security taxable maximum for roughly 35 working years and delayed claiming until age 70. Most retirees receive far less than that because relatively few workers hit the taxable maximum for so many years.

Medicare premiums are rising

For many retirees, Social Security does not operate on its own; it is closely tied to Medicare costs because Part B premiums are often deducted directly from monthly benefits. The Centers for Medicare & Medicaid Services (CMS) has set the standard Medicare Part B premium at $202.90 per month, up from $185 previously. The annual Part B deductible also increased to $283 from $257, according to CMS.

Higher earners should also keep in mind that Income-Related Monthly Adjustment Amounts (IRMAA) still apply. Beneficiaries with modified adjusted gross income above $109,000 for single filers or $218,000 for married couples filing jointly pay more than the standard premium, with surcharges rising by income level, according to CMS. If your income has changed significantly, it may be worth reviewing how that could affect your Social Security withholding.

The next COLA announcement is approaching

One more development to watch: the SSA is expected to announce the official COLA for the next year in mid-October, based on third-quarter inflation data from the Bureau of Labor Statistics. Advocacy groups have released preliminary estimates, but those are only projections. The final percentage will not be confirmed until the SSA makes its announcement.

After the announcement, the new COLA typically takes effect with January benefits, and the SSA sends personalized notices in December showing each beneficiary’s updated amount.

Bottom line

Your October Social Security payment date depends on whether you receive SSI, are a pre-1997 or dual beneficiary, or follow the birthday-based Wednesday schedule, as well as whether any of those dates fall on a weekend. In this month, only one payment changes: the October 3 payment moves to October 2, which is easy to overlook if you are not expecting it.

Beyond timing, understanding how your benefit is calculated and how it compares with national averages and maximums can help set realistic expectations for retirement income. The SSA’s online my Social Security account remains a free, direct way to review your earnings record and estimate future benefits instead of relying only on national averages.

FAQs

Will the upcoming COLA affect my October check?

No. October’s payment is based on your current benefit amount. Any newly announced COLA will apply to future payments.

Can I work while receiving Social Security retirement benefits?

Yes. If you are under full retirement age, earnings above the annual limit can cause the SSA to withhold some benefits. Once you reach full retirement age, the earnings limit no longer applies.

If the SSA withholds benefits because I earned too much, is that money lost?

No. When you reach full retirement age, the SSA recalculates your benefit to account for months when payments were withheld under the earnings test.

AARP Benefits

• Huge discounts on travel, groceries, prescriptions and more
• Access to financial planning resources and health tools
• Join AARP and get 25% off with automatic renewal