Social Security update: Direct monthly payment worth up to $4,194 arriving tomorrow for millions

Asher Notheis

December 27, 05:57 PM December 27, 05:57 PM

Several Social Security beneficiary recipients are set to receive this month's retirement payment worth up to $4,194 on Wednesday.

The monthly retirement benefits that the Social Security Administration gives its recipients are scheduled in waves of three, with payments always starting on the second Wednesday of a month and getting issued weekly after that.

Wednesday's payments will mark the third and final payment from the SSA this month and are intended for Social Security recipients born on the 21st through the 31st of a month, according to the SSA's calendar.

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The amount that recipients receive from these checks will vary based on several factors, including when a recipient chooses to retire and start receiving Social Security benefits. In order to receive the highest payment of $4,194, a person must have retired at 70. Those who retired at 67 receive a maximum check of $3,345, and anyone who retired at 62 only gets up to $2,364 per month, according to the SSA.

The first December payment by the SSA was made on Dec. 14 and was intended for people whose birthdays fall between the 1st and 10th of a month. The second payment was made on Dec. 21 and was for recipients whose birthdays fall between the 11th and 20th of a month.

Regular Social Security payments are based on earnings that a person makes throughout their lifetime and do not have any limits based on income or resources. The retirement payments from the SSA are different from other payments distributed by the agency, such as disability insurance or Supplemental Security Income, the latter of which is set to be paid on Dec. 30.

Analysts estimate that unless action is taken by Congress, Social Security insolvency may occur as early as 2034. This insolvency would be caused by more people living longer thanks to the advancements in science and medication, allowing them to take part in Social Security benefits longer than expected. In addition, the number of people working and paying taxes to support these benefits is gradually decreasing, according to the Committee for a Responsible Federal Budget.