Social Security update: First round of October payments worth $4,873 go out in 12 days

The first round of October'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 12 days.

Here is all you need to know about the payments, which go out in three rounds.

When am I eligible?

Citizens are eligible for Social Security payments beginning at 62 years old.

What is it?

The Social Security Act was signed into law by former President Franklin D. Roosevelt in 1935, and the Social Security Administration was created 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 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 receive their payments on Oct. 9. Beneficiaries born between the 11th and 20th of a month receive their checks on Oct. 16, and retirees born on or after the 21st of a month will receive their payments on Wednesday, Oct. 27.

How can I maximize my check?

Beneficiaries receive different amounts depending on when they retire, the amount they paid into Social Security, and the number of years they paid into Social Security.

Payments largely 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.

How is it financed?

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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 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.