45 Facts About Social Security Payments

Understanding Social Security Payments

Social Security is a lifeline for millions of Americans, providing crucial financial support. Let's dive into some key facts about Social Security payments that highlight its importance and impact.

1. Approximately 67.9 million Americans receive Social Security benefits each month as of June 30, 2024.
2. In 2024, Social Security is expected to pay out about $1.5 trillion in benefits, with an average monthly benefit amount of $1,787.08 per beneficiary.

Who Receives Social Security Benefits?

Different groups benefit from Social Security, each with unique needs and circumstances.

3. Retired workers make up 75.5% of total beneficiaries, with an average monthly benefit of $1,924.35.
4. Spouses of retired workers account for 2.7% of beneficiaries, receiving an average monthly benefit of $910.11.
5. Children of retired workers represent 1.0% of beneficiaries, with an average monthly benefit of $894.52.
6. Survivor benefits are provided to 8.5% of beneficiaries, averaging $1,509.29 per month.
7. Disabled workers make up 10.6% of beneficiaries, with an average monthly benefit of $1,542.43.
8. Spouses of disabled workers account for 0.1% of beneficiaries, receiving $421.81 monthly on average.
9. Children of disabled workers represent 1.4% of beneficiaries, with an average monthly benefit of $493.

Demographics of Beneficiaries

Understanding who benefits from Social Security helps us see its broad impact.

10. 86% of people aged 65 and older receive Social Security benefits, with 92% receiving benefits by age 70.
11. Women make up 55% of adult Social Security beneficiaries.
12. In 2023, 5.8 million people were newly awarded Social Security benefits, with 55% being women.
13. The average age of disabled-worker beneficiaries is 55.9 years old.

Social Security as a Major Income Source

For many, Social Security is a primary source of income.

14. For most people over age 65, Social Security represents about 30% of their total income.
15. 37% of men and 42% of women aged 65 and older receive 50% or more of their income from Social Security.
16. 12% of men and 15% of women aged 65 and older rely on Social Security for 90% or more of their income.

Protection Against Disability

Social Security also provides essential protection against disability.

17. About 90% of workers aged 21-64 in covered employment have protection in the event of a severe and prolonged disability.
18. About 1 in 4 of today’s 20-year-olds will become disabled and entitled to Social Security disabled worker benefits before reaching age 67.
19. 65% of the private sector workforce has no long-term disability insurance.

Survivor Benefits and Family Protection

Social Security offers vital support to families of deceased workers.

20. Survivors of deceased workers accounted for 11.2% of total benefits paid in 2023.
21. About 96% of persons aged 20-49 who worked in covered employment in 2023 have survivors insurance protection for their children under age 18 (and surviving spouses caring for children under age 16).

Workforce Participation and Retirement Savings

Social Security is intertwined with workforce participation and retirement savings.

22. An estimated 184 million workers will work in OASDI-covered employment in 2024.
23. About two-thirds (63%) of workers report they are currently saving for retirement. Only 16% of those without access to an employer-sponsored plan said they have any retirement savings.

Life Expectancy and Population Growth

Social Security must adapt to changing demographics.

24. The life expectancy of a 65-year-old has increased significantly, from almost 14 years in 1940 to over 20 years today.
25. The number of Americans 65 and older will increase from about 61 million in 2023 to about 77 million by 2035.

Beneficiary-to-Covered Worker Ratio

The ratio of beneficiaries to covered workers is shifting.

26. In 2023, there were an estimated 2.7 covered workers per each Social Security beneficiary. By 2035, this is expected to drop to 2.4 covered workers per beneficiary.

Benefit Amounts and Distribution

Social Security benefits vary widely based on the type of beneficiary.

27. Retired workers and family members: 53,758 thousand beneficiaries, with a monthly rate of $100,515 million.
28. Disabled workers and family members: 8,312 thousand beneficiaries, with a monthly rate of $11,621 million.
29. Survivors of deceased workers: 5,800 thousand beneficiaries, with a monthly rate of $8,745 million.

Family Benefits

Social Security also supports families in various ways.

30. Retired worker alone: 48,787 families, with an average family benefit of $1,911.
31. Retired worker and spouse: 1,774 families, with an average family benefit of $3,030.
32. Disabled worker, spouse, and children: 21 families, with an average family benefit of $2,739.

Survivor Benefits for Families

Families of deceased workers receive crucial support.

33. Children of deceased workers: 1,343 families, with an average family benefit of $1,441.
34. Aged widow(er)s: 3,292 families, with an average family benefit of $1,782.

Disability Benefits

Disabled individuals and their families also receive significant support.

35. Disabled widow(er)s: 198 families, with an average family benefit of $928.

Beneficiaries in Current-Payment Status

The number of beneficiaries in current-payment status provides insight into the program's reach.

36. As of December 2023, 67 million beneficiaries were in current-payment status, with 75% being retired workers and 11% being disabled workers.

Earnings in Covered Employment

Earnings subject to Social Security taxes have changed over time.

37. In 2023, about 6% of workers had earnings that equaled or exceeded the maximum amount subject to taxes, compared with 3% when the program began and a peak of 36% in 1965.
38. About 83% of earnings in covered employment were taxable in 2023, compared with 92% in 1937.

Beneficiaries by Age Group

Beneficiaries span various age groups, each with different needs.

39. Under FRA: 19,560 thousand beneficiaries, with a total monthly rate of $1,630 billion.
40. FRA: 51,960 thousand beneficiaries, with a total monthly rate of $4,330 billion.
41. Above FRA: No limit on earnings, with no limit on monthly benefits.

Total Benefits Paid Over Time

The total benefits paid have increased significantly over the years.

42. 2020: $55,628.60 billion
43. 2021: $58,743.07 billion (5.6% increase)
44. 2022: $62,583.15 billion (6.5% increase)
45. 2023: $66,251.14 billion (3.8% increase)

Social Security's Impact on Americans

Social Security plays a crucial role in the lives of millions of Americans. With nearly 68 million beneficiaries, the program provides essential financial support to retired workers, disabled individuals, and survivors of deceased workers. The average monthly benefit of $1,787.08 helps many seniors, who often rely on these payments for a significant portion of their income. Women, in particular, make up 55% of adult beneficiaries, highlighting the program's importance for gender financial security.

The program's reach extends beyond just retirees, offering disability and survivor benefits that protect families in times of need. As the population ages, the number of beneficiaries will continue to grow, making Social Security an even more vital part of the social safety net. Understanding these facts underscores the program's importance and the need for ongoing support and funding to ensure its sustainability for future generations.