Did You Know That...
- SSA paid benefits to about 59.2 million people in 2010
- Social Security provided at least half the income for 66 percent of the aged beneficiaries in 2009
- Social Security benefits were awarded to about 5.7 million people in 2010
- Women accounted for 56 percent of adult Social Security beneficiaries in 2010
- The average age of disabled-worker beneficiaries was 52.8 in 2010
- Eighty-five percent of SSI recipients received payments because of disability or blindness in 2010
- average indexed monthly earnings
- Disability Insurance
- Federal Insurance Contributions Act
- full retirement age
- Hospital Insurance
- Old-Age, Survivors, and Disability Insurance
- Old-Age and Survivors Insurance
- primary insurance amount
- Self-Employment Contributions Act
- Social Security Administration
- Supplemental Security Income
General Information, 2011
|Program||Employee a||Employer||Self-employed a|
|a. Recent legislation reduced the 2011 OASDI tax rates by two percentage points for employees (from 6.2 percent to 4.2 percent) and for the selfemployed (from 12.4 percent to 10.4 percent). The Department of the Treasury will make up the reductions in tax revenue due to lower tax rates by transferring money from the general fund of the Treasury to the OASI and DI trust funds. SSA will credit workers with the full amount of taxable earnings.|
Average wage index
Maximum earnings subject to Social Security taxes
|Type of earner||Total||OASI||DI||HI|
|Maximum earner||4,486||3,834||651||No limit|
|Self-employed maximum earner||11,107||9,495||1,613||No limit|
|NOTE: Totals do not necessarily equal the sum of rounded components.|
- $1,120 in earnings equals 1 credit
- $4,480 in earnings qualifies for the maximum of 4 credits
Exempt amounts under the retirement earnings test
|Age of retired person in 2011|
|Under full retirement age ($1 for $2 withholding rate)||14,160||1,180|
|Full retirement age ($1 for $3 withholding rate) a||37,680||3,140|
|Above full retirement age||No limit||No limit|
|a. The test applies only to earnings made in months prior to the month of attainment of full retirement age.|
Age for full retirement benefit for retired workers
|Year of birth||Full retirement age|
|1937 and earlier||65|
|1938||65 and 2 months|
|1939||65 and 4 months|
|1940||65 and 6 months|
|1941||65 and 8 months|
|1942||65 and 10 months|
|1955||66 and 2 months|
|1956||66 and 4 months|
|1957||66 and 6 months|
|1958||66 and 8 months|
|1959||66 and 10 months|
|1960 and later||67|
Benefit formula bend points
Benefit formula bend points (for workers with first eligibility in 2011)
Primary insurance amount (PIA) equals
- 90% of the first $749 of AIME, plus
- 32% of AIME over $749 through $4,517, plus
- 15% of AIME over $4,517
Substantial gainful activity
- $1,000 per month for nonblind persons
- $1,640 per month for blind persons
Trial work period
- $720 per month
Maximum Social Security benefit
Higher benefits are possible for those who work or delay benefit receipt after reaching full retirement age
Trust fund operations
|Calendar year and trust fund||Income||Outgo||Fund
|NOTE: Totals do not necessarily equal the sum of rounded components.|
OASDI administrative expenses
|NOTES: Totals do not necessarily equal the sum of rounded components.|
|Figures are subject to change.|
|Type of filing||Number|
Supplemental Security Income
Supplemental Security Income, January 2011
Federal benefit rate
- $674 individual
- $1,011 couple
- $2,000 individual
- $3,000 couple
|Family of two, aged head||13,195|
|Family of four||22,314|
|SOURCE: U.S. Census Bureau as of January 2011 (preliminary estimates).|
Income of the Aged Population
Size of Income, 1962 and 2009
Median annual income for married couples and nonmarried persons aged 65 or older has increased markedly since 1962 (the earliest year for which data are available). Even after adjusting for inflation, median income has risen 111% for married couples and 122% for nonmarried persons. A married couple is aged 65 or older if the husband is aged 65 or older or if the husband is aged 54 or younger and the wife is 65 or older.
Receipt of Income, 1962 and 2009
Social Security benefits—the most common source of income for married couples and nonmarried persons aged 65 or older in 1962—are now almost universal. The proportion of the aged population with asset income—the next most common source—is similar to that in 1962. Over the 47-year period, receipt of private pensions has more than tripled, and receipt of government pensions has increased by approximately 50%. The proportion of couples and nonmarried persons aged 65 or older who had earnings was smaller in 2009 than in 1962.
Shares of Aggregate Income, 1962 and 2009
In 1962, Social Security, private and government employee pensions, income from assets, and earnings made up only 84% of the aggregate total income of couples and nonmarried persons aged 65 or older, compared with 96% in 2009. The shares from Social Security, private pensions, and government employee pensions have increased since 1962. The share from earnings in 2009 is about the same as it was in 1962, while the share from asset income is lower.
Relative Importance of Social Security, 2009
In 2009, 88% of married couples and 86% of nonmarried persons aged 65 or older received Social Security benefits. Social Security was the major source of income (providing at least 50% of total income) for 54% of aged beneficiary couples and 73% of aged nonmarried beneficiaries. It was 90% or more of income for 22% of aged beneficiary couples and 43% of aged nonmarried beneficiaries. Total income excludes withdrawals from savings and nonannuitized IRAs or 401(k) plans; it also excludes in-kind support, such as food stamps and housing and energy assistance.
Poverty Status Based on Family Income, 2009
The aged poor are those with income below the poverty line. The near poor have income greater than or equal to the poverty line and less than 125% of the poverty line. Nonmarried women and minorities have the highest poverty rates, ranging from 15.5% to 19.5%. Married persons have the lowest poverty rates, with 4.3% poor and 2.7% near poor. Overall, 8.9% are poor and 5.4% are near poor.
Earnings in Covered Employment, 1937–2010
People contribute to Social Security through payroll taxes or self-employment taxes, as required by the Federal Insurance Contributions Act (FICA) and the Self-Employment Contributions Act (SECA). The maximum taxable amount is updated annually on the basis of increases in the average wage. Of the 157 million workers with earnings in Social Security–covered employment in 2010, 6% 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. About 84% of earnings in covered employment were taxable in 2010, compared with 92% in 1937.
Insured Status, 1970–2010
The percentage of persons aged 20 or older who are insured for benefits has remained the same for the past several years. 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. The maximum number of work credits needed to be fully insured is 40. An individual is said to be permanently insured if he or she has earned 40 work credits. To be insured for disability, the worker must be fully insured and have at least 20 work credits during the last 40 calendar quarters. (Requirements for disability-insured status are somewhat different for persons younger than age 31.) Disability benefits are available up to full retirement age (FRA).
|Year||Population aged 20 or older||Population aged 20–64a|
|SOURCE: Social Security Administration, Office of the Chief Actuary.|
|NOTES: The population in the Social Security area includes residents of the 50 states and the District of Columbia adjusted for net census undercount; civilian residents of American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and U.S. Virgin Islands; federal civilian employees and persons in the armed forces abroad and their dependents; crew members of merchant vessels; and all other U.S. citizens abroad.|
|Figures are subject to revision.|
|a. Insured for disability excludes those over full retirement age.|
Insured Status, by Sex, 1970 and 2010
Although men are more likely than women to be insured, the gender gap is shrinking. The proportion of men who are insured has remained essentially stable, with 91% fully insured and 81% insured for disability. a By contrast, the proportion of women who are insured has increased dramatically—from 63% to 85% fully insured and from 41% to 74% insured for disability.
New Benefit Awards, 2010
Benefits were awarded to about 5.7 million persons; of those, 46% were retired workers and 18% were disabled workers. The remaining 36% were survivors or the spouses and children of retired or disabled workers. These awards represent not only new entrants to the benefit rolls but also persons already on the rolls who become entitled to a different benefit, particularly conversions of disabled-worker benefits to retired-worker benefits at full retirement age.
|Retired workers and dependents||3,144||55|
|Spouses and children||510||9|
|Disabled workers and dependents||1,650||29|
|Spouses and children||623||11|
|Survivors of deceased workers||902||16|
New Awards to Workers, 1970–2010
Awards to retired workers have increased considerably over the past four decades, but proportionately much less than awards to disabled workers. The annualized rate of increase over the period from 1970 to 2010 is 1.7% for retired workers and 2.7% for disabled workers. The annual number of awards to retired workers rose from 1.3 million in 1970 to 2.6 million in 2010, while for disabled workers it increased from 350,000 in 1970 to 1.0 million in 2010.
Beneficiaries in Current-Payment Status, December 2010
More than 54 million beneficiaries were in current-payment status, that is, they were being paid a benefit. Sixty-four percent of those beneficiaries were retired workers and 15% were disabled workers. The remaining 21% were survivors or the spouses and children of retired or disabled workers.
|Retired workers and dependents||37,489||69|
|Spouses and children||2,896||5|
|Disabled workers and dependents||10,184||19|
|Spouses and children||1,980||4|
|Survivors of deceased workers||6,360||12|
Average Benefit Amounts, 2010
Benefits payable to workers who retire at the full retirement age and to disabled workers are equal to 100% of the PIA (subject to any applicable deductions). At the full retirement age, widow(er)s' benefits are also payable at 100% of the insured worker's PIA. Nondisabled widow(er)s can receive reduced benefits at age 60. Disabled widow(er)s can receive reduced benefits at age 50. Spouses, children, and parents receive a smaller proportion of the worker's PIA than do widow(er)s.
|Beneficiary||New awards||Benefits in
|Survivors of deceased workers|
|Widowed mothers and fathers||821||849|
|SOURCE: Social Security Administration, Master Beneficiary Record, 100 percent data.|
Beneficiaries, by Age, December 2010
About four-fifths of all OASDI beneficiaries in current-payment status were aged 62 or older, including 23 percent aged 75–84 and 10 percent aged 85 or older. About 15 percent were persons aged 18–61 receiving benefits as disabled workers, survivors, or dependents. Another 6 percent were children under age 18.
Disabled and Retired Workers, by Age, 1960–2010
The average age of disabled-worker beneficiaries in current-payment status has declined substantially since 1960, when DI benefits first became available to persons younger than age 50. In that year, the average age of a disabled worker was 57.2 years. The rapid drop in average age in the following years reflects a growing number of awards to workers under 50. By 1995, the average age had fallen to a low of 49.8, and by 2010, it had risen to 52.8. By contrast, the average age of retired workers has changed little over time, rising from 72.4 in 1960 to 73.7 in 2010.
Beneficiaries, by Sex, December 2010
Of all adults receiving monthly Social Security benefits, 44% were men and 56% were women. Eighty percent of the men and 61% of the women received retired-worker benefits. About one-sixth of the women received survivor benefits.
Average Monthly Benefit, by Sex, December 2010
Among retired and disabled workers who collected benefits based on their own work records, men received a higher average monthly benefit than did women. For those with benefits based on another person's work record (spouses and survivors), women had higher average benefits.
|Survivors of deceased workers|
|Mothers and fathers||730||859|
|SOURCE: Social Security Administration, Master Beneficiary Record, 100 percent data.|
Women Beneficiaries, 1940–2010
The proportion of women among retired-worker beneficiaries has quadrupled since 1940. The percentage climbed from 12% in 1940 to 47% in 1980, 48% in 1990, and 49% in 2010. The proportion of women among disabled-worker beneficiaries has more than doubled since 1957, when DI benefits first became payable. The percentage rose steadily from 19% in 1957 to 35% in 1990 and 47% in 2010.
Women with Dual Entitlement, 1960–2010
The proportion of women aged 62 or older who are receiving benefits as dependents (that is, on the basis of their husbands' earnings record only) has been declining—from 57% in 1960 to 26% in 2010. At the same time, the proportion of women with dual entitlement (that is, paid on the basis of both their own earnings records and those of their husbands) has been increasing—from 5% in 1960 to 28% in 2010.
Number of Recipients, 1974–2010
The Supplemental Security Income (SSI) program provides income support to needy persons aged 65 or older, blind or disabled adults, and blind or disabled children. Eligibility requirements and federal payment standards are nationally uniform. SSI replaced the former federal/state adult assistance programs in the 50 states and the District of Columbia.
Payments under SSI began in January 1974, with 3.2 million persons receiving federally administered payments. By December 1974, this number had risen to nearly 4 million and remained at about that level until the mid-1980s, then rose steadily, reaching nearly 6 million in 1993 and 7 million by the end of 2004. As of December 2010, the number of recipients was about 7.9 million. Of this total, 4.6 million were between the ages of 18 and 64, 2.0 million were aged 65 or older, and 1.2 million were under age 18.
Payment Amounts, by Age, December 2010
The average monthly federally administered SSI payment was $501. Payments varied by age group, ranging from an average of $597 for recipients aged under 18 to $405 for those aged 65 or older. The maximum federal benefit rate in December 2010 was $674 for an individual and $1,011 for a couple, plus any applicable state supplementation.
Federally Administered Payments, December 2010
A total of 7.9 million persons received federally administered SSI payments. The majority received federal SSI only. States have the option of supplementing the federal benefit rate and are required to do so if that rate is less than the income the recipient would have had under the former state program.
Basis for Eligibility and Age of Recipients, December 2010
Fifteen percent of SSI recipients received benefits on the basis of age, the rest on the basis of disability. Twenty-six percent of the recipients were aged 65 or older. In the SSI program, a disabled recipient is still classified as "disabled" after reaching age 65. In the OASDI program, DI beneficiaries are converted to the retirement program when they attain full retirement age.
Percentage Distribution of Recipients, by Age, 1974–2010
The proportion of SSI recipients aged 65 or older has declined from 61% in January 1974 to 26% in December 2010. The overall long-term growth of the SSI program has occurred because of an increase in the number of disabled recipients, most of whom are under age 65.
Recipients, by Sex and Age, December 2010
Overall, 55% of the approximately 7.9 million SSI recipients were women, but that percentage varied greatly by age group. Women accounted for 68% of the 2.0 million recipients aged 65 or older, 55% of the 4.6 million recipients aged 18–64, and 34% of the 1.2 million recipients under age 18.
Other Income, December 2010
Over fifty-six percent of SSI recipients aged 65 or older received OASDI benefits, as did 31.5% of those aged 18–64 and 7.4% of those under age 18. Other types of unearned income, such as income from assets, were reported most frequently among those under age 18 (20.0%) and those aged 65 or older (12.2%). Earned income was most prevalent (5.0%) among those aged 18–64.
OASDI, SSI, or Both
All Beneficiaries, December 2010
About 59.2 million people received a payment from Social Security. Most (51.3 million) received OASDI benefits only, about 5.2 million received SSI only, and 2.7 million received payments from both programs.
|Both OASDI and SSI||2,698|
Beneficiaries Aged 65 or Older, December 2010
Benefits were paid to 38.1 million people aged 65 or older. Over 1.1 million received both OASDI and SSI.
|Disabled adult children||77|
|Receiving SSI only||894|
|Receiving both OASDI and SSI||1,147|
Disabled Beneficiaries Aged 18–64, December 2010
Payments were made to 12.2 million people aged 18–64 on the basis of their own disability. Sixty-two percent received disability payments from the OASDI program only, 27% received payments from the SSI program only, and 11% received payments from both programs.
|Workers aged 64 or younger||7,865|
|Disabled adult children||872|
|OASDI disability only||7,594|
|Receiving SSI disability only||3,262|
|Receiving both OASDI and SSI disability||1,369|
OASDI Beneficiaries, December 2010
More than 3.2 million children under age 18 and students aged 18–19 received OASDI benefits. Children of deceased workers had the highest average payments, in part because they are eligible to receive monthly benefits based on 75% of the worker's PIA, compared with 50% for children of retired or disabled workers. Overall, the average monthly benefit amount for children was $545.
SSI Recipients, 1974–2010
In 1974, when the program began, 70,900 blind and disabled children were receiving SSI. That number increased to 995,000 in 1996, declined to 847,000 in 2000, and is now 1,239,300. The relatively high average payment to children (compared with payments made to blind and disabled adults) is due in part to a limited amount of other countable income. The spike in average monthly benefits in 1992 is due to retroactive payments resulting from the Sullivan v. Zebley decision. As of December 2010, blind and disabled children were receiving SSI payments averaging $597.
Social Security Financing
How Social Security Is Financed
Social Security is largely a pay-as-you-go program. Most of the payroll taxes collected from today's workers are used to pay benefits to today's recipients. In 2010, the Old-Age and Survivors Insurance and Disability Insurance Trust Funds collected $781.1 billion in revenues. Of that amount, 81.9% was derived from payroll tax contributions and reimbursements from the General Fund of the Treasury and 3.1% was from income taxes on Social Security benefits. Interest earned on the government bonds held by the trust funds provided the remaining 15.0% of income. Assets increased in 2010 because income exceeded expenditures for benefit payments and administrative expenses.
Social Security's Demographic Challenge
The number of retired workers is projected to continue growing rapidly as the members of the post–World War II baby boom continue to reach early retirement age, and will double in less than 30 years. People are also living longer, and the birth rate is low. As a result, the ratio of workers paying Social Security taxes to people collecting benefits is projected to fall from 2.9 to 1 in 2010 to 2.1 to 1 in 2029. In 2010, current taxes were not enough to pay scheduled benefits and administrative expenses. The 2011 Trustees Report projects that this shortfall will continue in each year thereafter, and also projects that redemption of trust fund assets will be sufficient to allow for full payment of scheduled benefits until 2036.
The Long-Run Financial Outlook
Social Security is not sustainable over the long term at current benefit and tax rates. Beginning in 2010, the program is projected to pay more in benefits and expenses than it collects in taxes each year. By 2036 it is estimated that the trust funds will be exhausted. At that point, payroll taxes and other income will flow into the fund but will be sufficient to pay only 77% of program costs. As reported in the 2011 Trustees Report, the projected shortfall over the next 75 years is 2.22% of taxable payroll.