What you receive each month from Social Security

Your Social Security monthly payment is a fixed amount deposited into your bank account or mailed as a check, usually on the same day each month. The amount depends on three things: your age when you start taking payments, your lifetime earnings record, and which type of benefit you are receiving — retirement, survivor, or disability.

Social Security calculates your payment based on your highest 35 years of earnings. If you worked fewer than 35 years, zeros are counted for the missing years, which lowers your payment. The longer you wait to start payments after age 62, the larger your monthly amount becomes, up until age 70. If you start at 62, your payment is roughly 30 percent smaller than if you wait until your full retirement age. If you wait until 70, your payment is roughly 24 percent larger than at your full retirement age.

The Social Security Administration (SSA) sends you a notice each year showing your exact monthly payment amount. You can also view this amount by creating an account at ssa.gov and logging into your personal Social Security record.

Key Takeaways

  • Your monthly payment amount is based on your age when you start, your 35 highest-earning years, and the type of benefit you receive.
  • Waiting to claim between age 62 and 70 increases your monthly payment by roughly 8 percent per year you delay.
  • Payments are deposited monthly into a bank account or sent by check, usually on the same date each month.
  • The SSA adjusts all payments each year for cost-of-living increases, though the exact percentage varies year to year.
  • You can view your payment amount and earnings record at ssa.gov by creating a personal account.

How the SSA calculates your payment amount

The SSA uses a formula that starts with your average indexed monthly earnings (AIME). This is your average monthly income from your 35 highest-earning years, adjusted for wage growth in the economy. The SSA then applies a bend-point formula to convert your AIME into your primary insurance amount (PIA), which is the payment you would receive at your full retirement age.

Your full retirement age depends on your birth year. If you were born between 1943 and 1954, your full retirement age is 66. If you were born between 1955 and 1960, it ranges from 66 and 2 months to 66 and 10 months. If you were born in 1960 or later, your full retirement age is 67. This is the age at which you receive 100 percent of your calculated benefit.

If you claim before your full retirement age, the SSA reduces your payment by a percentage that depends on how many months early you claim. If you claim after your full retirement age, the SSA increases your payment by 8 percent per year until you reach age 70, after which payments do not increase further.

Cost-of-living adjustments and annual changes

Each January, the SSA increases all Social Security payments by a percentage called the cost-of-living adjustment (COLA). This adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation. The COLA percentage varies from year to year depending on inflation rates in the prior year.

In some years, inflation is low enough that no COLA is applied, and payments remain the same as the previous year. In other years, the COLA can be 3 percent or higher. The SSA announces the COLA percentage in October, and the increase takes effect in January. Your January payment will be the first one to include the adjustment.

You do not need to do anything to receive the COLA increase — it is applied automatically to your account. The SSA sends a notice in December showing your new payment amount for January.

Payment timing and how to receive your money

Social Security payments are deposited on a schedule based on your birth date. If you were born between the 1st and 10th of the month, your payment arrives on the second Wednesday of each month. If you were born between the 11th and 20th, it arrives on the third Wednesday. If you were born between the 21st and 31st, it arrives on the fourth Wednesday. Supplemental Security Income (SSI) payments, a separate program for low-income individuals, arrive on the first of each month.

You must have a bank account to receive payments by direct deposit, which is now the only method available for new beneficiaries. If you already receive payments by check, you can continue to do so, but the SSA encourages switching to direct deposit. To set up or change your payment method, log into your account at ssa.gov or call the SSA at 1-800-772-1213.

If your payment does not arrive on the expected date, contact the SSA within three business days. Delays can occur if there are errors in your bank information or if the SSA is processing a change to your account.

Taxes on your Social Security income

Depending on your total income, a portion of your Social Security payment may be subject to federal income tax. The SSA uses a formula based on your "combined income," which includes your adjusted gross income, nontaxable interest, and half of your Social Security benefits.

If your combined income is below $25,000 (or $32,000 if you are married filing jointly), none of your Social Security is taxed. If your combined income is between $25,000 and $34,000 (or $32,000 and $44,000 if married), up to 50 percent of your benefits may be taxed. If your combined income exceeds $34,000 (or $44,000 if married), up to 85 percent of your benefits may be taxed.

The SSA does not withhold taxes automatically. If you expect to owe taxes on your benefits, you can request that the SSA withhold a flat amount from your monthly payment by completing Form W-4V and mailing it to your local SSA office. You can also make quarterly estimated tax payments directly to the IRS.

Changes to your payment amount

Your monthly payment can change if you report a change in your circumstances to the SSA. If you return to work and earn above a certain threshold, your payment may be reduced or suspended until you reach your full retirement age. For 2024, if you are under your full retirement age and earn more than $23,400 per year, the SSA deducts $1 from your benefit for every $2 you earn above that amount. In the year you reach your full retirement age, the limit is higher, and the reduction applies only to earnings before the month you reach full retirement age.

If you become disabled or if a family member becomes disabled, you may become may be able to access for additional payments. If you marry, divorce, or if a spouse or child dies, you should report this to the SSA, as it may affect your payment or make other family members may be able to access for benefits on your record.

You can report changes to the SSA by logging into your account at ssa.gov, calling 1-800-772-1213, or visiting your local SSA office in person.

Frequently Asked Questions

When does my Social Security payment arrive each month?

Your payment arrives on a Wednesday between the second and fourth week of the month, depending on your birth date. Payments for people born on the 1st through 10th arrive on the second Wednesday; the 11th through 20th on the third Wednesday; and the 21st through 31st on the fourth Wednesday. You can confirm your exact payment date by logging into ssa.gov.

Can I change my payment method from check to direct deposit?

Yes. Log into your account at ssa.gov, call 1-800-772-1213, or visit your local SSA office to switch to direct deposit. You will need your bank account and routing number. Direct deposit is faster and more find than checks, and the SSA encourages all beneficiaries to use it.

What happens to my Social Security if I keep working?

If you are under your full retirement age and earn more than the annual limit (currently $23,400 for 2024), the SSA reduces your payment by $1 for every $2 you earn above that amount. Once you reach your full retirement age, there is no limit on how much you can earn without affecting your payment.

How much of my Social Security payment is taxed?

It depends on your total income. If your combined income (adjusted gross income plus half your Social Security) is below $25,000 (or $32,000 if married), none is taxed. Between $25,000 and $34,000 (or $32,000 and $44,000 if married), up to 50 percent may be taxed. Above those amounts, up to 85 percent may be taxed. You can request tax withholding by submitting Form W-4V to your local SSA office.

What should I do if my payment does not arrive on time?

Contact the SSA within three business days of your expected payment date. Call 1-800-772-1213 or log into your account at ssa.gov to report the issue. Delays can result from incorrect bank information or processing errors, and the SSA can investigate and reissue your payment if needed.