Concerns Over Social Security and Medicare Finances
During a recent discussion on the Big Money Show, a panel raised serious concerns about new findings indicating that Social Security and Medicare are facing financial crises that could lead to bankruptcy. They emphasize that without prompt action from Washington, retirees may experience significant cuts to their benefits.
Some Social Security recipients will notice a change in their payment timeline next month due to an issue with the calendar, resulting in two checks being issued in December.
The Social Security Administration (SSA) generally disburses payments starting with Supplemental Security Income (SSI) on the first day of each month. This program is designed for elderly individuals and those with disabilities who have minimal or no income. It’s separate from the regular retirement benefits most people think of when they hear “Social Security.”
If the first of the month lands on a weekend or a federal holiday, SSI payments are moved up to the last business day of the preceding month. This practice ensures that beneficiaries receive their funds in time for any month-beginning expenses.
Looking ahead to December 2025, two SSI payments will occur. The first will arrive on December 1, covering that month’s benefits. The second will be distributed on December 31, which will provide benefits for January.
Social Security Cola Updates Amid Delays
Due to delays linked to the government shutdown, updates about the 2026 Social Security Cost-of-Living Adjustments (COLA) have recently come to light.
Typically, SSI payments are processed via direct deposit. However, for those without bank accounts or who prefer different methods, funds can be accessed using a Direct Express card.
The SSA has been transitioning away from paper checks as of late September, aligning with an order from earlier this year that mandated all federal payments shift to electronic transfers, like direct deposits or transfers to debit cards.
Discussions Around Measuring Social Security COLA
There’s an ongoing debate regarding whether Social Security COLAs should be benchmarked against an inflation measure more tailored to the elderly population.
As of September, SSA data indicates over 68 million Americans were receiving Social Security benefits, with approximately 390,000 of them, or roughly 0.6%, receiving benefits via paper checks.
Beneficiaries can use the My Social Security portal or contact the SSA over the phone to enroll in direct deposit. There’s also the option to register in person at a financial institution.
