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

The first round of August’s Social Security payments, worth up to $4,873 for the highest-income earners who retire at age 70, will go out to the first group of retirees in five days.

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

When am I eligible?

U.S. citizens are eligible to receive Social Security payments starting at 62 years old.

What is it?

In 1935, President Franklin D. Roosevelt signed the Social Security Act into law, creating the Social Security Administration to manage it. The agency sends monthly checks to retirees to reduce or replace their incomes once they stop working.

When does the check arrive?

Social Security payments typically begin on the second Wednesday of every month, and the following waves go out in 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 receive their payments on Aug. 14. Beneficiaries born between the 11th and 20th of a month receive their checks on Aug. 21, and retirees born on or after the 21st of a month receive their payments on Aug. 28.

How can I maximize my check?

The amount recipients receive depends on when they retire, the amount paid into Social Security, and the number of years paid into Social Security.

Payments primarily depend on recipients’ retirement age. According to the SSA, retiring at the youngest age, 62, allows up to $2,710 per month, while delaying retirement until age 70 can allot up to $4,873 per month.

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

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How is it financed?

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

Social Security payment amounts are set to shrink unless Congress takes action to prevent it. Analysts estimate 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 dwindling number of workers.