Free Guide to Social Security Payment Changes in September

What Changes to Social Security Payments in September

Social Security payments can shift in September for several reasons tied to how the program works. The most common change involves the annual Cost-of-Living Adjustment, or COLA. This adjustment happens once per year, usually announced in October for changes taking effect in January. However, other payment changes can occur in September based on individual circumstances.

One significant change that may affect September payments relates to earnings limits for people who have reached Full Retirement Age. If you were born in 1943 or later, your Full Retirement Age varies—it ranges from 66 to 67 depending on your birth year. Once you reach this age, there are no earnings limits, meaning you can work and earn as much as you want without Social Security reducing your benefits. For people under Full Retirement Age, the earnings limit in 2024 is $23,400 per year. If you cross this threshold, Social Security withholds $1 in benefits for every $2 you earn over the limit.

September changes may also occur if you recently turned 70 and are receiving Delayed Retirement Credits. These credits increase your benefit amount by approximately 8% for each year you delay claiming between your Full Retirement Age and age 70. When you reach 70, your payment amount adjusts upward to reflect these credits.

Additionally, if you had a life event in the summer months—such as getting married, divorced, or experiencing a change in your household—Social Security may process these changes in September, which could affect your payment amount or type of benefit you receive.

Practical Takeaway: Review any notices you receive from Social Security in August and early September. These notices explain why your payment changed and what your new payment amount will be. Keep these documents for your records.

Understanding Cost-of-Living Adjustments and When They Apply

The Cost-of-Living Adjustment, or COLA, is a percentage increase applied to Social Security benefits to help account for inflation. The Social Security Administration calculates COLA each year using the Consumer Price Index for Urban Wage Earners and Clerical Workers, commonly called the CPI-W. This index measures changes in prices for goods and services that working people buy.

COLA announcements typically happen in October, and the new payment amounts take effect the following January for most beneficiaries. However, the timing of when you first started receiving Social Security affects when your COLA kicks in. If you began receiving benefits in May or later of any year, your first COLA adjustment happens the January after you turn 62, even if you have not yet begun claiming benefits. If you started benefits between January and April, your first COLA applies the following January.

For 2024, the COLA was 3.2%, meaning that someone receiving $1,000 per month in 2023 received an additional $32 per month starting in January 2024. The actual percentage varies year to year based on inflation data. In recent years, COLA percentages have ranged from 1.3% to 8.7%, reflecting different economic conditions.

One important point: COLA applies to your Primary Insurance Amount, which is the benefit amount calculated at your Full Retirement Age. If you claimed before Full Retirement Age, your COLA increase is smaller because of the permanent reduction applied to early claims. Conversely, if you delayed claiming past Full Retirement Age, your COLA increase is larger because your benefit base is higher due to Delayed Retirement Credits.

Spouses and adult children receiving benefits on your record also receive the same COLA percentage increase as you do. However, the amount of their increase in dollars may differ because their benefits are calculated as a percentage of your Primary Insurance Amount.

Practical Takeaway: Do not expect a COLA change in September—these adjustments occur in January. However, September is a good time to confirm that your January COLA increase appears correct in your next payment statement or by checking your My Social Security account online.

Changes Related to Family Benefits and Household Status

If you are receiving Social Security based on your own work record, changes to your household status may affect your benefits starting in September. Family members may also receive benefits on your Social Security record, including spouses, former spouses, and children. When life circumstances change, Social Security processes these updates and may adjust payments.

Marriage is one significant household change that affects Social Security. A spouse can receive benefits on your record once they reach age 62, or at any age if they are caring for a child under age 16 who is receiving benefits on your record. If you married in the summer, Social Security may process this information in September, potentially affecting your spouse's payment or establishing a new benefit for them. The amount a spouse receives is typically up to 50% of your Primary Insurance Amount, though this percentage is reduced if your spouse claims before their Full Retirement Age.

Divorce also changes Social Security payments. An ex-spouse can receive benefits on your record if the marriage lasted at least 10 years, you are at least 62 years old (or they are at least 62 if you are already receiving benefits), and you have been divorced for at least two years (unless you are age 62 or older). The ex-spouse's benefits do not reduce your own payments. If you recently divorced, September processing may update your records if your ex-spouse applies for benefits based on your record.

Changes in living arrangements, such as if a child in your household turns 19 (the age limit for non-student children to receive benefits) or if a disabled adult child's status changes, can trigger payment adjustments in September. Additionally, if someone in your household was previously ineligible for benefits but now meets the requirements, their benefits may begin in September following paperwork submission.

Remarriage can also affect benefits for surviving spouses or ex-spouses receiving widow's or widower's benefits. A widow, widower, or surviving ex-spouse who remarries after age 60 (or age 50 if disabled) may continue receiving the same benefits, but if they remarry before these ages, their benefits typically stop.

Practical Takeaway: Notify Social Security of any household changes—marriage, divorce, or children aging out of benefits—as soon as they occur. This prevents overpayments that you may need to repay later. You can report changes by visiting a local Social Security office, calling 1-800-772-1213, or using your My Social Security account online.

September Changes for Recipients Under Full Retirement Age

If you are receiving Social Security benefits but have not yet reached your Full Retirement Age, your payment may change in September if your work situation changed during the summer. Social Security has an earnings test that applies to people under Full Retirement Age. For 2024, if you earn more than $23,400 per year, Social Security withholds $1 in benefits for every $2 you earn over this limit.

The earnings test is important because many people believe their Social Security stops if they work, but that is not how it works. Instead, your benefits are temporarily reduced if earnings exceed the limit. The full amount is not lost—you receive credit for the withheld benefits when you reach Full Retirement Age, and your payment amount increases to account for those months you did not receive payments.

For example, imagine you are 64 years old, receiving $1,500 per month in Social Security benefits, and earning $30,000 per year from a job. You earn $6,600 more than the $23,400 limit. Social Security would withhold $3,300 from your annual benefits ($1 withheld for every $2 over the limit). This means instead of receiving $18,000 in annual benefits, you would receive $14,700. However, when you reach Full Retirement Age, your Primary Insurance Amount increases to reflect those withheld months, resulting in a higher monthly payment going forward.

In September, if you increased your work hours during the summer or took on additional employment, this may affect your September payment if Social Security has processed earnings information showing you will exceed the annual limit. Some beneficiaries can use a monthly earnings test if they are in the year they reach Full Retirement Age, which allows them more flexibility—they only have earnings limits in months before the month they reach Full Retirement Age.

Once you reach Full Retirement Age, the earnings test no longer applies. You can work and earn any amount without any reduction to your Social Security benefits. This is another reason why September may bring changes—if you turned 66, 67, or your specific