Social Security update: First round of July payments worth $4,873 to go out in seven days

The first round of July's Social Security payments, worth up to $4,873 for the highest-income earners who retire at 70, will go out to the next group of retirees in one week.

Here is everything to know about this month’s Social Security payments.

Social Security retirement payments are monthly checks given to retirees, meant to reduce or replace their incomes once they stop working. The Social Security Administration, which manages the payments, was created with a law signed by President Franklin D. Roosevelt in September 1935.

Social Security payments typically begin on the second Wednesday of every month, and the following waves go out in the subsequent weeks. The distribution of payments depends on which day of the month a retiree was born.

Retirees born between the 1st and 10th of a month received their payment on July 10. Beneficiaries born between the 11th and 20th of a month will get their checks on July 17, and retirees born on or after the 21st of a month will receive their payments on July 24.

The age of recipients at the time of retirement, the amount paid into Social Security, and the number of years paid into Social Security all affect the maximum payment retirees receive.

Beneficiaries can see a personalized estimate of what they can expect each month through the SSA’s calculator.

Payments largely depend on the age at which recipients choose to retire. Retiring at the youngest age, 62, allows up to $2,710 per month, while delaying to 70 can allot up to $4,873 per month, according to the SSA.

The earliest one can begin receiving Social Security payments is 62 years old.

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Social Security is financed by a payroll tax paid by employers and employees.

Social Security payment amounts are set to shrink unless Congress takes action to prevent it. Analysts estimate that the SSA will no longer be able to give out full payments to recipients as early as 2034 due to a rising number of retirees and a shrinking number of workers.