ACTUARIAL NOTE
NUMBER 1
MARCH 1963
U. S. DEPARTMENT OF
HEALTH, EDUCATION, AND WELFARE
SOCIAL SECURITY ADMINISTRATION

DISABILITY AND OLD-AGE BENEFITS
IN CURRENT-PAYMENT STATUS, BY STATE
DECEMBER 31, 1962

By Gerald Hutchinson
Division of the Actuary – Baltimore

At the end of 1962, about 741,000 disabled workers under age 65 were receiving disability benefits and 9,739,000 retired workers aged 62 or over were receiving old-age benefits under the old-age, survivors, and disability insurance program. In the accompanying tables, these beneficiaries have been classified by their State of residence1 at the end of the year. The tables also show the average monthly benefits being paid, as well as percentage distributions of the beneficiaries by size of benefit.

The number of disabled-worker beneficiaries at the end of 1962 was greater by 123,000 (20%) than in December 1961; the average monthly benefit ($89.99) was 40 cents higher than the average a year earlier. The higher average resulted chiefly from the steadily rising proportion of benefits computed on the basis of earnings after 1950-83% at the end of 1962, 80% at the end of 1961, and 62% in December 1957.

The number of old-age (retired-worker) beneficiaries increased by 814,000 (9%) in 1962. The average old-age. benefit amount went up each month during 1962 except November (when it dropped 1 cent), from $75.65 in December 1961 to $76.19 in December 1962. The large number of actuarially reduced benefits awarded to men aged 62-64 tended to reduce the amount of the average benefit. A factor in the $0. 54 increase for the year was the greater proportion of benefits based on earnings after 1950—74% in December 1962 in comparison with 72% in December 1961 and 58% at the end of 1957. Another factor was the rise in the proportion of beneficiaries whose benefits were computed under the provisions that permit as many as 5 years of lowest earnings and periods of disability to be excluded in calculating the average monthly wage. These beneficiaries made up 78% of the total at the end of 1962, 74% at the end of 1961, and 49% in December 1957. The increase from $4,200 to $4,800 in the maximum amount of annual earnings, creditable for years after 1958, contributed slightly to the higher average amount for both old-age and disability benefits.

As shown in the table, 38% of all disabled-worker beneficiaries were receiving monthly benefits of $100.00-$123.00 at the end of 1962. Benefits in the $70.00-$99.90 range were going to 44% of the total, and benefits of $40.10-$69.90 to 16%. Minimum benefits of $40.00 were being paid to about 1½% of the disabled-worker beneficiaries.

For 27% of the old-age beneficiaries, the monthly benefit was $100.00-$125.00; for 29% it was in the $70.00-$99.90 range; and for 27% it was $40.10-$69.90. About 12% of the old-age beneficiaries were receiving monthly benefits of exactly $40.00, and for 5% the benefit was in the $32.00-$39.90 range, because of actuarial reduction for retirement before age 65.

As in past years, beneficiaries living in Michigan were receiving the highest disability benefits—an average of $98.20—and those living in Connecticut, the highest old-age benefits—$85.02. Beneficiaries living in Mississippi were receiving the lowest benefits, on the average—$78.48 for disability and $57.59 for old-age. Most of the States retained approximately the same relative position in the ranking by size of average benefit that they had held a year earlier.

Benefits of $100.00-$123.00 were being paid to 57% of the disabled-worker beneficiaries in Michigan and to 20% of chose in Mississippi. Only 9% of Michigan's beneficiaries were receiving less than $70.00, but for 34% of the beneficiaries living in Mississippi the amount of the disability benefit was $40.00-$69.90. About 37% of the old-age beneficiaries in Connecticut and 8% of those in Mississippi were receiving benefits of $100.00-$125.00. Benefits of less than $70.00 were going to only 30% of Connecticut's old-age beneficiaries but to 74% of those in Mississippi.


1 Data for American Samoa, Guam, Puerto Rico, the Virgin Islands, and foreign countries are excluded from the State comparisons made later in this note.
Number and average monthly amount of disability insurance benefitsa in current-payment status and
percentage distribution by amount of benefit, b by State, at end of December 1962
Statec
(ranked by size of
average benefit)
Average
disability
benefit
Number of
disability
beneficiaries
Percent of disability beneficiaries receiving—
Total$40.00
d
$40.10-
54.90
$55.00-
69.90
$70.00-
84.90
$85.00-
99.90
$100.00-
114.90
$115.00-
123.00 e
Total $89.99740,867100.01.5 3.512.824.319.5 21.816.6
Michigan 98.2029,305100.0.61.57.2 17.116.829.427.4
Alaska 97.36222100.00  1.89.5 14.422.128.823.4
Arizona 95.586,649100.0.41.99.1 19.719.526.223.2
California 95.4856,834100.0.41.78.9 20.019.326.822.9
West Virginia 95.3614,820100.0.72.18.8 19.818.327.522.8
Oregon 95.127,080100.0.42.18.8 19.819.829.219.9
Nevada 95.08849100.00  2.58.7 20.019.929.319.6
Ohio 94.7337,137100.0.72.39.4 20.318.726.721.9
Washington 94.729,728100.0.51.99.3 20.219.928.719.5
Indiana 94.4117,260100.0.82.39.8 19.820.026.121.2
Connecticut 94.008,939100.0.41.59.5 23.120.725.219.6
New Jersey 93.8822,747100.0.62.010.3 22.319.623.122.1
Pennsylvania 93.1652,914100.0.82.210.1 21.920.426.618.0
Illinois 92.9638,641100.0.62.311.1 22.519.424.020.1
Utah 92.911,900100.0.82.810.2 23.118.026.418.7
Wisconsin 92.8813,051100.01.42.611.4 21.018.324.321.0
Montana 92.452,189100.01.12.611.6 21.618.626.018.5
Idaho 91.961,932100.0.62.412.0 21.921.426.515.2
Colorado 91.465,492100.0.73.112.1 22.521.023.916.7
New York 91.3470,951100.0.72.412.2 24.920.021.318.5
Florida 90.3327,289100.01.54.112.5 23.019.221.817.9
Minnesota 90.038,654100.01.53.513.8 23.618.721.917.0
Delaware 90.031,773100.01.52.913.5 25.818.518.819.0
Wyoming 90.00928100.0.92.913.6 24.919.223.415.1
Kansas 89.826,854100.01.53.613.2 23.620.222.815.1
Massachusetts 89.6719,985100.0.52.312.7 28.321.220.514.5
Hawaii 89.451,658100.01.12.410.7 28.125.119.912.7
New Hampshire 89.022,166100.0.62.012.3 28.324.720.611.5
Iowa 88.927,874100.01.74.013.9 24.019.922.014.5
Maryland 88.899,900100.01.33.514.1 25.819.620.015.7
Oklahoma 88.4710,027100.01.54.613.0 25.720.121.014.1
New Mexico 88.352,625100.01.24.214.5 26.119.420.214.4
Missouri 88.1518,375100.01.54.214.7 25.519.420.314.4
Rhode Island 87.734,138100.0.52.214.1 30.123.619.410.1
Kentucky 87.1817,602100.02.24.814.5 24.820.221.611.9
Vermont 86.991,717100.01.73.615.0 26.522.420.710.1
Texas 86.7833,324100.02.15.214.8 26.019.518.713.7
Nebraska 86.053,774100.01.84.416.4 26.820.618.611.4
Maine 85.903,852100.01.63.714.5 29.224.517.88.7
Virginia 84.9218,764100.0 2.45.316.527.6 19.717.610.9
Louisiana 84.3914,325100.02.96.417.1 26.518.516.412.2
Alabama 84.2817,641100.03.55.616.1 28.018.916.811.1
South Dakota 84.051,626100.01.84.819.2 26.521.318.08.4
Tennessee 83.8017,856100.03.16.317.0 27.418.616.810.8
Dist. of Columbia 83.593,190100.01.63.618.0 33.520.714.97.7
North Dakota 83.031,328100.02.46.918.2 28.518.615.59.9
Arkansas 82.279,220100.03.27.218.2 28.418.315.49.3
Georgia 80.4421,969100.03.26.519.6 32.419.312.16.9
South Carolina 80.1813,211100.03.55.919.3 31.822.711.94.9
North Carolina 79.7723,782100.02.76.720.8 32.620.311.55.4
Mississippi 78.4810,470100.06.28.419.7 30.215.912.27.4
Virgin Islands 77.2331100.06.53.222.6 32.225.86.53.2
American Samoa 76.001100.00  0  0   100.00  0  0  
Puerto Rico 63.504,109100.026.116.818.3 22.78.65.42.1
Guam 44.001100.00  0  100.0 0  0  0  0  
Abroad 96.002,188100.0.61.06.9 20.222.028.820.5
a Payable to disabled workers under age 65.
b For persons receiving both a disability (disabled-worker) benefit and a disability secondary benefit, the disability benefit amount includes the reduced secondary benefit.
c Beneficiary's State of residence, based on monthly benefit check address.
d About 60 beneficiaries receiving less than $40 are included in the figures on which the percentages are based.
e About 900 beneficiaries receiving more than $123 are included in the figures on which the percentages are based.

Number and average monthly amount of old-age insurance benefits in current-payment status and
percentage distribution by amount of benefit, a by State, at end of December 1962
Stateb
(ranked by size of
average benefit)
Average
old-age
benefit
Number of
old-age
beneficiaries
Percent of old-age beneficiaries receiving—
Total$32.00-
39.90 c
$40.00-
$40.10-
54.90
$55.00-
69.90
$70.00-
84.90
$85.00-
99.90
$100.00-
114.90
$115.00-
125.00 d
Total$76.199,738,500 100.05.111.911.3 15.815.913.414.1 12.5
Connecticut85.02150,978 100.02.65.58.7 13.216.216.519.5 17.8
Michigan84.37399,745 100.03.37.89.5 13.013.213.219.2 20.8
New Jersey83.49347,992 100.03.16.89.1 13.915.815.718.3 17.3
New York81.561,031,139 100.03.27.89.5 14.817.115.616.4 15.6
Pennsylvania81.09643,266 100.03.68.79.2 14.416.714.917.3 15.2
Illinois81.04557,805 100.03.69.19.7 14.215.814.916.5 16.2
Ohio80.73501,089 100.03.89.610.2 14.514.813.016.7 17.4
Massachusetts79.65333,497 100.03.27.410.1 16.419.216.015.3 12.4
Washington78.44169,201 100.03.910.411.4 15.315.313.516.6 13.6
Rhode Island78.1558,394 100.03.76.610.8 17.320.017.315.0 9.3
Arizona77.9658,798 100.05.210.911.0 14.614.613.815.6 14.3
Wisconsin77.89247,839 100.04.210.911.1 16.115.213.115.2 14.2
Florida77.86369,480 100.05.210.011.4 14.715.214.216.2 13.1
Indiana77.74268,166 100.04.211.311.0 15.315.514.015.2 13.5
Utah77.6234,224 100.04.511.110.8 15.316.014.115.3 12.9
California77.60829,690 100.04.510.212.0 15.615.513.715.0 13.5
Delaware77.4422,241 100.05.010.610.5 15.916.613.914.3 13.2
Oregon77.16121,904 100.03.910.612.3 16.215.613.416.1 11.9
Montana76.8638,026 100.03.612.510.6 16.316.713.214.3 12.8
Nevada76.6911,950 100.04.710.611.7 15.617.213.515.6 11.1
New Hampshire75.3944,069 100.03.810.211.7 17.719.216.013.0 8.4
Maryland75.06127,096 100.05.412.111.5 16.716.613.312.9 11.5
Wyoming74.9015,705 100.04.612.310.8 17.118.313.614.0 9.3
Colorado74.6982,974 100.04.712.811.8 16.316.913.913.4 10.2
Minnesota74.67203,882 100.04.712.911.7 17.116.513.013.1 11.0
Iowa74.59181,333 100.04.212.611.5 17.417.314.413.2 9.4
Alaska74.283,443 100.04.613.612.5 16.914.713.015.8 8.9
Idaho73.9435,617 100.04.213.012.3 16.917.913.713.0 9.0
West Virginia73.8296,837 100.05.414.511.1 15.617.012.613.9 9.9
Missouri73.33272,479 100.05.413.112.4 17.217.112.911.8 10.1
Kansas72.68129,384 100.04.614.312.8 17.416.713.211.9 9.1
North Dakota72.6034,707 100.05.013.812.0 18.217.513.411.3 8.8
Nebraska72.3890,909 100.04.314.112.4 17.918.014.311.1 7.9
Hawaii72.2819,953 100.06.514.311.5 15.217.816.010.9 7.8
Vermont72.2725,879 100.04.713.112.7 18.718.013.611.3 7.9
South Dakota71.5940,529 100.04.814.612.2 18.218.213.811.1 7.1
Maine71.3167,050 100.05.213.513.1 18.618.213.610.8 7.0
Dist. of Columbia71.0634,329 100.06.115.612.1 17.417.512.110.7 8.5
Oklahoma69.87121,742 100.07.216.113.4 17.015.911.510.3 8.6
New Mexico69.1627,617 100.07.018.013.3 16.615.311.110.8 7.9
Texas68.49388,215 100.08.116.813.8 17.415.610.89.5 8.0
Louisiana67.60108,210 100.09.517.613.6 16.815.010.49.2 7.9
Virginia67.51162,062 100.07.619.113.4 17.115.610.89.3 7.1
Kentucky67.06161,064 100.07.318.414.3 18.415.810.29.2 6.4
Alabama64.96132,760 100.010.221.113.5 16.814.39.38.0 6.8
North Carolina64.35191,601 100.09.318.515.2 19.615.99.86.8 4.9
Georgia63.81149,292 100.010.819.414.7 18.215.59.46.6 5.4
South Carolina63.6584,574 100.010.420.414.1 17.815.310.67.0 4.4
Tennessee63.09168,961 100.010.321.815.3 17.613.98.67.1 5.4
Arkansas62.13103,714 100.010.122.915.2 18.014.78.16.4 4.6
Virgin Islands59.00803 100.010.529.815.6 15.412.16.66.1 3.9
Mississippi57.5997,981 100.012.828.315.1 17.612.26.24.5 3.3
Guam53.4127 100.018.533.411.1 11.118.53.70   3.7
American Samoa50.333 100.00  33.333.3 33.30  0  0   0  
Puerto Rico49.1567,392 100.019.042.913.3 11.07.03.22.2 1.4
Abroad78.1170,883 100.01.68.69.2 18.722.215.715.8 8.2
a For persons receiving both an old-age (retired-worker) benefit and a secondary survivor benefit, or an old-age and survivors insurance secondary life benefit that was awarded, reinstated, or adjusted after September 13, 1956, the old-age benefit amount includes the reduced secondary benefit.
b Beneficiary's State of residence, based on monthly benefit check address.
c About 800 beneficiaries receiving less than $32 are included in the figures on which the percentages are based.
d About 70 beneficiaries receiving more than $125 are included in the figures on which the percentages are based.