Nine Things You May Not Know About Social Security

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Social Security is an important source of income for millions of retirees. However the program has a lot of ins and outs, and even longtime beneficiaries may not know them all. Here’s a look at some facts about Social Security that may surprise you.

1. Benefits are paid in the month following the month for which they are due

When you’re eligible for Social Security, the check you receive is for the prior month’s benefits. For example, you’ll get your July benefits in August. Social Security makes its annual cost-of-living (COLA) adjustment to benefits due in December, so beneficiaries see the increase in their January checks.

Payments are typically made on Wednesdays, based on your birthday. For example, if you were born on the first through the 10th day of the month, you’ll receive your payment on the second Wednesday of the month. If you are receiving benefits based on someone else’s earnings record (such as that of your spouse), payments will be based on the primary beneficiary’s birth date. You can find a full schedule of 2025 Social Security payments at www.ssa.gov/pubs/EN-05-10031-2025.pdf.

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Even if you have direct deposit — which is the case for most beneficiaries — Social Security needs to have the correct address on file so it can mail you important documents. If Social Security can’t contact you, it will stop your benefits. You can change your address online through your mySocialSecurity account.

Every year, Social Security sends out billions of dollars in overpayments to beneficiaries. The overpayments may occur because Social Security received incorrect information about their income or made an error in calculating benefits.

Whatever the reason, Social Security has the right to demand that beneficiaries refund the overpayments — and the terms of those refunds have become tougher. The Social Security Administration now says beneficiaries must refund 50% of the amount they were overpaid, a significant increase from the 10% refund required for overpayments before that date.

To avoid this potential nightmare, make sure the information your employer reports to Social Security is accurate. Use your online account to check the earnings record Social Security has on file. This is particularly important if you received Social Security Supplemental Income (SSI) or Social Security Disability Insurance (SSDI). Incorrectly reported wages or a change in income while enrolled in these programs can result in an overpayment of benefits.

4. Benefits withheld through the earnings test won’t disappear forever

If you file for Social Security before you reach full retirement age (66 for beneficiaries born between 1943 and 1954, gradually increasing to 67 for beneficiaries born after that) and earn income from a job, Social Security will withhold a portion of your benefits after your earnings exceed a certain threshold. However, once you reach full retirement age, Social Security will recalculate your benefit to account for any months that you received reduced benefits because of the earnings test.

5. There’s a maximum benefit you’re eligible to receive at full retirement age

Social Security uses your highest 35 years of earnings, indexed to a national average wage index, to calculate your primary insurance amount (PIA) — in other words, the benefit you qualify to receive at full retirement age. (If you have fewer than 35 years of earnings, each year with no earnings will be entered as zero.)

However, there’s a limit to how much you can receive, no matter how much you earned during your working years. If you reach full retirement age in 2025, the maximum monthly benefit is $4,018, up from $3,882 in 2024. But you can boost your check by waiting to file for benefits. If you postpone claiming benefits until age 70, your monthly benefit will grow by 8% a year until then. Any annual cost-of-living adjustments will be included, too.

You can get an estimate of your benefits for any age between 62 and 70 at www.ssa.gov/prepare/plan-retirement.

6. Your children may qualify for benefits

If you’re eligible for benefits and have young children, they may qualify, too. Your child (or children) must be younger than 18 (or 19 if still in high school). Unless he or she is disabled, benefits will stop when your child turns 18, or, if your child is in high school, benefits will last until they graduate or until two months after they turn 19, whichever comes first. Dependent grandchildren are also eligible for benefits.

Minor children can receive up to half of the amount the parent will receive at full retirement age. In the case of multiple children, Social Security caps the amount a family can receive at 150% to 188% of the parent’s full retirement age (FRA) benefit. The catch here is that you must file for benefits for your children to receive them. Benefits paid to a minor child won’t reduce the amount you’re eligible to receive when you file, but if you start benefits early — at age 62, for example — so that your children will receive payments, your benefits will still be permanently reduced.

Children who are younger than 18 (or up to 19 if attending high school full-time) or who were disabled before age 22 can also receive a Social Security survivor benefit if a parent dies. If the parent had reached retirement age at the time of death, children are eligible to receive 75% of the deceased parent’s benefit. If the deceased parent hadn’t claimed benefits, survivor benefits would be based on the amount the parent would have been entitled to receive at the time of death. If the parent dies before full retirement age, minor children are eligible to receive 75% of the amount they would have received had the parent lived to full retirement, based on the parent’s earnings history.

This automatic enrollment includes Medicare Part A, which covers inpatient care in a hospital or a skilled nursing facility, and Part B, which covers doctor visits and other outpatient care. If you have health insurance from your employer (or your spouse’s employer), you can decline Part B, which charges a monthly premium. If you’re approaching 65, you aren’t receiving Social Security, and you want Medicare coverage, you should contact Medicare three months before your 65th birthday.

In 2025, Social Security will make a one-time payment of $255 to newly widowed spouses of beneficiaries. This payment is often referred to as a funeral benefit, but you can use it for any purpose.

To qualify for the payment, the surviving spouse must have been living with the deceased spouse or living apart but receiving certain benefits based on the deceased spouse’s record. Make sure you or the funeral director contacts Social Security to ensure you receive all of the benefits for which you’re eligible. The amount of this benefit hasn’t changed in 70 years, although some lawmakers have proposed increasing it to reflect the rising cost of funerals.

Social Security uses the same rule it applies to living beneficiaries to determine eligibility after a beneficiary dies. A beneficiary must live an entire month to qualify for benefits, and benefits aren’t prorated. For example, if your spouse dies in July, the check received in August — which is for July benefits — must be returned. If your deceased spouse had direct deposit, contact the financial institution so it can return any payments received after death.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

Block joined Kiplinger in June 2012 from USA Today, where she was a reporter and personal finance columnist for more than 15 years. Prior to that, she worked for the Akron Beacon-Journal and Dow Jones Newswires. In 1993, she was a Knight-Bagehot fellow in economics and business journalism at the Columbia University Graduate School of Journalism. She has a BA in communications from Bethany College in Bethany, W.Va.