Timing of Social Security Payments Crucial for 13 Million Recipients, Study Finds

The possibility of Congress failing to raise the debt ceiling and Social Security benefits being potentially delayed, the impact on recipients cannot be underestimated.

Social Security ( Photo: AARP )

The timing of Social Security payments is crucial for approximately 13 million individuals who heavily rely on the program

Research indicates that a significant portion of older Americans are almost entirely dependent on Social Security. In 2015, 21% of individuals received 75% or more of their family income from Social Security, making it a vital source of support. Since then, the population of those aged 65 and over has increased from 48 million to 60 million, resulting in Social Security becoming even more essential as a retirement income source. Consequently, the number of people reliant on Social Security has risen to around 13 million. While delayed payments may eventually be paid in full, the timing is of utmost importance. These 13 million individuals often have limited or no alternative income sources by the end of the month. Research suggests that timing significantly affects financially strained low-income households. Various studies have focused on Social Security recipients, revealing that those who receive their checks early in the month are more likely to resort to payday loans and face difficulties with bill payments.

Individuals receiving their checks later in the month are better able to manage expenses and avoid desperate measures

Healthcare researchers discovered that a delay in Social Security payments has adverse consequences for cash-strapped retirees who rely on Medicare. When Social Security checks are distributed, prescription fills increase among recipients who have copayments, indicating that individuals wait for their Social Security payment to cover medication expenses. Furthermore, the timing was found to be critical in bill payments for recipients of food aid under the Supplemental Nutrition Assistance Program (SNAP). Aligning SNAP-card deposits with utility bill due dates resulted in smaller unpaid balances, highlighting the importance of synchronized payment schedules.

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