50 Facts About Social Security Benefits

What is Social Security?

Social Security is a vital program in the United States, providing financial support to millions. It covers retirees, disabled workers, and survivors of deceased workers. Here are some key facts about Social Security benefits.

1. Number of Beneficiaries: As of June 2024, almost 68 million Americans receive a Social Security benefit each month.
2. Total Benefits Paid: In 2024, Social Security is expected to pay out approximately $1.5 trillion in benefits.
3. Retirement Benefits: Retired workers and their dependents accounted for 77.8% of total benefits paid in 2023.
4. Disabled Workers: Disabled workers and their dependents accounted for 11.0% of total benefits paid in 2023.
5. Survivor Benefits: Survivors of deceased workers accounted for 11.2% of total benefits paid in 2023.

Importance of Social Security

Social Security is more than just a retirement program. It plays a crucial role in reducing poverty and providing a safety net for many Americans.

6. Income Source: Social Security benefits represent about 30% of the income of people over age 65.
7. Reliance on Social Security: Among Social Security beneficiaries age 65 and older, 37% of men and 42% of women receive 50% or more of their income from Social Security.
8. Poverty Reduction: Social Security kept 27.6 million people out of poverty in 2023.
9. Benefit Distribution: In June 2024, retired workers received an average monthly benefit of $1,918, while disabled workers received an average of $1,538.
10. Dependent Benefits: Dependents of retired and disabled workers also receive benefits, with dependents of retired workers receiving an average of $2.3 billion monthly and dependents of disabled workers receiving an average of $0.5 billion monthly.

Who Receives Social Security?

Social Security benefits extend to various groups, including retirees, disabled workers, and survivors. Here’s a closer look at the beneficiaries.

11. Survivor Benefits Amount: Survivors received an average monthly benefit of $1,508 in June 2024.
12. Beneficiaries by Age: As of June 2024, 51.2 million retired workers, 7.2 million disabled workers, and 5.8 million survivors were receiving benefits.
13. Life Expectancy Increase: The life expectancy of a 65-year-old has increased from almost 14 years in 1940 to over 20 years today.
14. Population Growth: The number of Americans 65 and older is expected to increase from about 61 million in 2023 to about 77 million by 2035.
15. Covered Workers: There are an estimated 2.7 covered workers per each Social Security beneficiary as of 2023, which is expected to decrease to 2.4 by 2035.

Disability and Survivor Benefits

Social Security also provides crucial support for disabled workers and survivors of deceased workers.

16. Disability Coverage: About 90 percent of workers aged 21-64 in covered employment in 2023 and their families have protection in the event of a severe and prolonged disability.
17. Disability Prevalence: About one in four of today’s 20-year-olds will become disabled and entitled to Social Security disabled worker benefits before reaching age 67.
18. Long-Term Disability Insurance: 65% of the private sector workforce has no long-term disability insurance.
19. Survivor Insurance Protection: More than one in eight of today’s 20-year-olds will die before reaching age 67, and 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).
20. Workforce Coverage: An estimated 184 million workers will work in OASDI-covered employment in 2024.

Retirement and Savings

Social Security is a key part of retirement planning, but it’s not the only source of income for retirees.

21. Private Pension Coverage: Only 31% of the workforce in the private sector has access to private pension coverage.
22. Retirement Savings: About two-thirds (63%) of workers report they are currently saving for retirement, but only 16% of those without access to an employer-sponsored plan said they have any retirement savings.
23. Benefit Formula: The primary insurance amount (PIA) for workers with first eligibility in 2020 equals 90% of the first $960 of average indexed monthly earnings (AIME), plus 32% of AIME over $960 through $5,785, plus 15% of AIME over $5,785.
24. Maximum Monthly Benefit: The maximum monthly Social Security benefit for workers retiring at full retirement age (FRA) in 2020 was $3,011.
25. Full Retirement Age: The FRA varies by birth year, ranging from 65 for those born in 1937 and earlier to 67 for those born in 1960 and later.

Eligibility and Work Credits

Understanding how to qualify for Social Security benefits is essential. Here’s what you need to know about eligibility and work credits.

26. Insured Status: To be fully insured, a worker must have at least one work credit (quarter of coverage) for each year elapsed after age 21 (but no earlier than 1950) and before the year in which he or she attains age 62, becomes disabled, or dies.
27. Work Credits: The maximum number of work credits needed to be fully insured is 40, and an individual is said to be permanently insured if he or she has earned 40 work credits.
28. Disability-Insured Status: To be insured for disability, the worker must be fully insured and have at least 20 work credits during the last 40 calendar quarters.
29. Beneficiaries in Current-Payment Status: As of December 2019, 64 million beneficiaries were in current-payment status, with 70% being retired workers and 13% being disabled workers.
30. Benefit Payment: Social Security benefits are based on how much a worker earned during their working career, with higher lifetime earnings resulting in higher benefits.

Timing and Family Benefits

When you start receiving benefits and who else can receive them are important considerations.

31. Benefit Reduction: If a worker begins receiving benefits before reaching full retirement age, their benefit amount will be reduced.
32. Benefit Increase: If a worker continues working beyond full retirement age, their benefit will increase from the time they reach full retirement age.
33. Family Benefits: Family members who can collect benefits include a surviving spouse who is 60 or older, 50 or older with a qualifying disability, or any age if they care for a child younger than 16 or have a qualifying disability.
34. Child Benefits: Children can receive benefits if they are unmarried and younger than 18 years old, between 18 and 19 years old but in an elementary or secondary school as full-time students, or age 18 or older with a qualifying disability.
35. Parent Benefits: Parents can receive benefits on a worker’s earnings if they were dependent on the worker for at least half of their support.

Additional Benefits and Statistics

Social Security also provides some additional benefits and has various statistics worth noting.

36. One-Time Payment: If a worker has enough credits, a one-time payment of $255 can be made to a surviving spouse or child.
37. Benefit Timing: Workers can begin receiving retirement benefits at age 62, but payments will be greater if they wait until their full retirement age.
38. Benefit Impact: Social Security accounts for at least 50% of income for more than half of households headed by someone 65 or older, and it provides nearly 80% of income for 1 in 5 such households.
39. Benefit Distribution by Sex: In 2020, 83% of men and 69% of women received retired-worker benefits, with 12% of women receiving survivor benefits.
40. Benefit Distribution by Age: The average age of disabled-worker beneficiaries in 2019 was 54.9 years old.

Gender and Family Dynamics

Social Security benefits can vary significantly based on gender and family dynamics.

41. Benefit Amounts by Sex: The average monthly benefit for men in 2019 was higher than for women, reflecting differences in earnings history.
42. Women Beneficiaries: Women make up 55% of adult Social Security beneficiaries, indicating their significant reliance on the program for financial support.
43. Dual Entitlement: Women with dual entitlement (i.e., receiving benefits based on their own work record and their spouse’s work record) are more common among women beneficiaries.
44. Child Beneficiaries: Child beneficiaries are also a significant portion of Social Security recipients, with many receiving benefits due to their parents’ work history.

Data and Research

Accurate data is crucial for understanding and improving Social Security.

45. Benefit Accuracy: Data from the Current Population Survey (CPS) and other surveys provide accurate measurements of Social Security benefit income, which is crucial for researchers and policymakers.
46. Benefit Validation: The CPS results can be validated by comparing them with data from the Survey of Income and Program Participation (SIPP) and the Health and Retirement Study (HRS), which include verifiably accurate information from Social Security administrative records.

Retirement Income Sources

Social Security is one of several sources of retirement income. Here’s how it fits into the bigger picture.

47. Income Sources in Retirement: Beyond Social Security, other traditional sources of retirement income include employer-provided pensions and income from assets or savings.
48. Retirement Income Pillars: The three traditional pillars of retirement income are Social Security benefits, employer-provided pensions, and income from assets or savings. Earnings are increasingly considered a fourth pillar of retirement security.
49. Public Assistance and Other Sources: Public assistance and other sources account for a small percentage of per capita family income among the aged population, indicating the primary reliance on Social Security and other traditional sources.
50. Program Importance: Social Security is more than just a retirement program; it provides benefits to people with qualifying disabilities, spouses and children of beneficiaries, and survivors of deceased workers, making it a vital component of American social welfare.

The Importance of Social Security Benefits

Social Security benefits are a lifeline for millions of Americans. They provide crucial financial support to retirees, disabled workers, and survivors of deceased workers. With almost 68 million beneficiaries each month, the program significantly reduces poverty, especially among the elderly. It’s not just about retirement; it also offers disability and survivor benefits, ensuring a safety net for various life situations. The average monthly benefits, ranging from $1,508 to $1,918, make a substantial difference in recipients' lives. As life expectancy increases and the population ages, the importance of Social Security will only grow. Understanding these facts underscores the need to maintain and improve this vital program. It’s more than just numbers; it’s about securing a stable future for countless families.