$5,180 Social Security Benefits for Late-Month Retirees – Check Your Eligibility

A few days ago, the Social Security Administration gave a statement, which said that any retirees born between the 21st and 31st date of any month, may be eligible to receive up to $5,180 in monthly benefits from Social Security by 2025. It is a continuous part of lifelong alteration rolling up to increases in these payments by Social Security against inflation and cost of living.

For retirees born on the 21st-31st date of any month, this post explains how this change will affect the benefits, whom to consider eligible, and how to ascertain you’re getting the correct amount. It discusses also the eligibility requirements, how Social Security payments are calculated, and provides benefit amount details.

Who Are the Beneficiaries of the Social Security Payment of $5,180?

The benefit increase mostly affects babies born between the 21st and the 31st of any month, but who really qualifies for this payment, and how do you get to know if you are among the lucky ones?

Eligibility Criteria:
To be eligible for Social Security benefits, one has to be at least 62 years but should wait until Full Retirement

Age (FRA) or later to enhance the monthly benefit.

For applicants born between the 21st and the 31st, benefits are computed based on their FRA ages, which are from 66 to 67 years, based on their year of birth.

Work Credits:

• To receive Social Security benefits: one must have had 10 years of work in which Social Security taxes were deducted, which equals 40 work credits. Basically, the more work one does, the more taxes are paid, and hence, the higher the benefit.
  Retirement Age: When one applies for benefits, the benefits amount will also vary. Accepting them early, at age 62, gives an individual a reduced amount. However, if an individual were to wait until FRA or even maximum out until age 70, the most monthly benefit would be attained.
• Key Takeaway: Retirees born between the 21st and the 31st who have reached FRA and satisfy the other criteria would be entitled to $5,180 per month in Social Security benefits, the biggest possible benefit payable to a worker retiring at full-retirement age in the year 2025.

The Social Security payment amounts are calculated based on a number of criteria, with your work history and indexed average earnings being the primary consideration.

Here is a brief breakdown of how the calculation of benefits works:

Steps for Calculating Social Security Benefits:

• AIME: The Average Indexed Monthly Earnings of a claimant (herein referred to as AIME). The AIME considers the highest of thirty-five years of earning adjusted for inflation; if lesser than thirty-five years were worked, then zero amounts are input in the remaining years.
• PIA: Once the AIME is determined, the Social Security Administration has a specific formula to determine the Primary Insurance Amount (PIA), which is the monthly amount entitled to you at full retirement age. By layering “bend points” along your average monthly earnings, the formula calculates PIA.
• Full Retirement Age: An actuarial reduction of PIA will be applied if chosen before FRA (usually 66 or 67). If benefits are claimed after FRA (until 70), they will be increased due to delayed retirement credits.
• Other Factors: Some other elements, such as cost-of-living adjustments (COLA) and post-retirement earnings, further affect the benefits. The adjustments are usually made yearly.

Example of Social Security Benefit Calculation

Earnings Level	AIME Range	Estimated Monthly Benefit (PIA)
$60,000 per year	$4,800	~$2,200
$90,000 per year	$7,500	~$3,400
$120,000 per year	$10,000	~$4,200
$150,000 per year	$12,500	~$5,180

What Does This Change Mean for Retirees Born Between the 21st-31st?

Given such maximum limitation limits, this really is a big flip in the very calculation of benefits, especially for anyone close to or at full retirement age. So, what does this mean for such retirees?

• Points to Remember:
• Maximum Social Security Benefit:

The $5,180 monthly is the maximum benefit payable to anyone eligible for retirement upon reaching full retirement age. Their actual amount may vary very slightly from that depending on their individual work record and earnings and other factors.

Full Retirement Age (FRA):

The FRA is a birth-year issue. Between the 21st and the 31st, your FRA should lie at or near 67. If you wait till 67, the full benefit amount will be given to you, but claiming the benefits early will result in an offset to your benefit.

Higher Earnings Equal Higher Benefits:

As mentioned before, Social Security benefits are based upon the highest 35 years of your earnings. If you had some high earnings during that time, then the benefit would fall somewhere near the ceiling of $5,180.

Benefit Increase for Delayed Retirement-Always worth it:

The monthly amount can possibly increase through delayed retirement credits through the suspension of claiming after full retirement age.

• Verify That You Are Being Given the Correct Amount
• Examine Your Social Security Statement:
• Go to the Social Security website, create an account, and view your Social Security Statement most important- ”forecast on your benefits concerning your earnings”.
• Know Your Full Retirement Age (FRA):
• Be clear about your full retirement age and try and experiment with the ages planned for claiming to wonder if waiting will increase the amount.
• Consult with a Financial Planner:
• Understand how Our Financial Planner can impact your benefits, whether you should claim early or wait until you can maximize them most.
• Think of Your Health and Life Expectancy:
• All these factors will help in deciding whether to take the money early for retirement benefits or to delay such benefits. If one believes he is going to live more than the average expectancy, he may find that he receives a larger payout over his lifespan by delaying benefits.

Social Security Payment Timeline

Social Security payments for retirees are typically issued monthly. The payment date depends on your birth date and whether you claim early, at full retirement age, or later.

Payment Schedule Based on Birth Date:

Birth Date	Payment Date
1st–10th of the month	2nd Wednesday of the month
11th–20th of the month	3rd Wednesday of the month
21st–31st of the month	4th Wednesday of the month

If you’re born between the 21st and 31st, your benefits will be issued on the 4th Wednesday of each month.

FAQS: