ACTUARIAL NOTE
NUMBER 1 MARCH 1963 |
U. S. DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE SOCIAL SECURITY ADMINISTRATION |
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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.
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 |
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Total | $89.99 | 740,867 | 100.0 | 1.5 | 3.5 | 12.8 | 24.3 | 19.5 | 21.8 | 16.6 |
Michigan | 98.20 | 29,305 | 100.0 | .6 | 1.5 | 7.2 | 17.1 | 16.8 | 29.4 | 27.4 |
Alaska | 97.36 | 222 | 100.0 | 0 | 1.8 | 9.5 | 14.4 | 22.1 | 28.8 | 23.4 |
Arizona | 95.58 | 6,649 | 100.0 | .4 | 1.9 | 9.1 | 19.7 | 19.5 | 26.2 | 23.2 |
California | 95.48 | 56,834 | 100.0 | .4 | 1.7 | 8.9 | 20.0 | 19.3 | 26.8 | 22.9 |
West Virginia | 95.36 | 14,820 | 100.0 | .7 | 2.1 | 8.8 | 19.8 | 18.3 | 27.5 | 22.8 |
Oregon | 95.12 | 7,080 | 100.0 | .4 | 2.1 | 8.8 | 19.8 | 19.8 | 29.2 | 19.9 |
Nevada | 95.08 | 849 | 100.0 | 0 | 2.5 | 8.7 | 20.0 | 19.9 | 29.3 | 19.6 |
Ohio | 94.73 | 37,137 | 100.0 | .7 | 2.3 | 9.4 | 20.3 | 18.7 | 26.7 | 21.9 |
Washington | 94.72 | 9,728 | 100.0 | .5 | 1.9 | 9.3 | 20.2 | 19.9 | 28.7 | 19.5 |
Indiana | 94.41 | 17,260 | 100.0 | .8 | 2.3 | 9.8 | 19.8 | 20.0 | 26.1 | 21.2 |
Connecticut | 94.00 | 8,939 | 100.0 | .4 | 1.5 | 9.5 | 23.1 | 20.7 | 25.2 | 19.6 |
New Jersey | 93.88 | 22,747 | 100.0 | .6 | 2.0 | 10.3 | 22.3 | 19.6 | 23.1 | 22.1 |
Pennsylvania | 93.16 | 52,914 | 100.0 | .8 | 2.2 | 10.1 | 21.9 | 20.4 | 26.6 | 18.0 |
Illinois | 92.96 | 38,641 | 100.0 | .6 | 2.3 | 11.1 | 22.5 | 19.4 | 24.0 | 20.1 |
Utah | 92.91 | 1,900 | 100.0 | .8 | 2.8 | 10.2 | 23.1 | 18.0 | 26.4 | 18.7 |
Wisconsin | 92.88 | 13,051 | 100.0 | 1.4 | 2.6 | 11.4 | 21.0 | 18.3 | 24.3 | 21.0 |
Montana | 92.45 | 2,189 | 100.0 | 1.1 | 2.6 | 11.6 | 21.6 | 18.6 | 26.0 | 18.5 |
Idaho | 91.96 | 1,932 | 100.0 | .6 | 2.4 | 12.0 | 21.9 | 21.4 | 26.5 | 15.2 |
Colorado | 91.46 | 5,492 | 100.0 | .7 | 3.1 | 12.1 | 22.5 | 21.0 | 23.9 | 16.7 |
New York | 91.34 | 70,951 | 100.0 | .7 | 2.4 | 12.2 | 24.9 | 20.0 | 21.3 | 18.5 |
Florida | 90.33 | 27,289 | 100.0 | 1.5 | 4.1 | 12.5 | 23.0 | 19.2 | 21.8 | 17.9 |
Minnesota | 90.03 | 8,654 | 100.0 | 1.5 | 3.5 | 13.8 | 23.6 | 18.7 | 21.9 | 17.0 |
Delaware | 90.03 | 1,773 | 100.0 | 1.5 | 2.9 | 13.5 | 25.8 | 18.5 | 18.8 | 19.0 |
Wyoming | 90.00 | 928 | 100.0 | .9 | 2.9 | 13.6 | 24.9 | 19.2 | 23.4 | 15.1 |
Kansas | 89.82 | 6,854 | 100.0 | 1.5 | 3.6 | 13.2 | 23.6 | 20.2 | 22.8 | 15.1 |
Massachusetts | 89.67 | 19,985 | 100.0 | .5 | 2.3 | 12.7 | 28.3 | 21.2 | 20.5 | 14.5 |
Hawaii | 89.45 | 1,658 | 100.0 | 1.1 | 2.4 | 10.7 | 28.1 | 25.1 | 19.9 | 12.7 |
New Hampshire | 89.02 | 2,166 | 100.0 | .6 | 2.0 | 12.3 | 28.3 | 24.7 | 20.6 | 11.5 |
Iowa | 88.92 | 7,874 | 100.0 | 1.7 | 4.0 | 13.9 | 24.0 | 19.9 | 22.0 | 14.5 |
Maryland | 88.89 | 9,900 | 100.0 | 1.3 | 3.5 | 14.1 | 25.8 | 19.6 | 20.0 | 15.7 |
Oklahoma | 88.47 | 10,027 | 100.0 | 1.5 | 4.6 | 13.0 | 25.7 | 20.1 | 21.0 | 14.1 |
New Mexico | 88.35 | 2,625 | 100.0 | 1.2 | 4.2 | 14.5 | 26.1 | 19.4 | 20.2 | 14.4 |
Missouri | 88.15 | 18,375 | 100.0 | 1.5 | 4.2 | 14.7 | 25.5 | 19.4 | 20.3 | 14.4 |
Rhode Island | 87.73 | 4,138 | 100.0 | .5 | 2.2 | 14.1 | 30.1 | 23.6 | 19.4 | 10.1 |
Kentucky | 87.18 | 17,602 | 100.0 | 2.2 | 4.8 | 14.5 | 24.8 | 20.2 | 21.6 | 11.9 |
Vermont | 86.99 | 1,717 | 100.0 | 1.7 | 3.6 | 15.0 | 26.5 | 22.4 | 20.7 | 10.1 |
Texas | 86.78 | 33,324 | 100.0 | 2.1 | 5.2 | 14.8 | 26.0 | 19.5 | 18.7 | 13.7 |
Nebraska | 86.05 | 3,774 | 100.0 | 1.8 | 4.4 | 16.4 | 26.8 | 20.6 | 18.6 | 11.4 |
Maine | 85.90 | 3,852 | 100.0 | 1.6 | 3.7 | 14.5 | 29.2 | 24.5 | 17.8 | 8.7 |
Virginia | 84.92 | 18,764 | 100.0 | 2.4 | 5.3 | 16.5 | 27.6 | 19.7 | 17.6 | 10.9 |
Louisiana | 84.39 | 14,325 | 100.0 | 2.9 | 6.4 | 17.1 | 26.5 | 18.5 | 16.4 | 12.2 |
Alabama | 84.28 | 17,641 | 100.0 | 3.5 | 5.6 | 16.1 | 28.0 | 18.9 | 16.8 | 11.1 |
South Dakota | 84.05 | 1,626 | 100.0 | 1.8 | 4.8 | 19.2 | 26.5 | 21.3 | 18.0 | 8.4 |
Tennessee | 83.80 | 17,856 | 100.0 | 3.1 | 6.3 | 17.0 | 27.4 | 18.6 | 16.8 | 10.8 |
Dist. of Columbia | 83.59 | 3,190 | 100.0 | 1.6 | 3.6 | 18.0 | 33.5 | 20.7 | 14.9 | 7.7 |
North Dakota | 83.03 | 1,328 | 100.0 | 2.4 | 6.9 | 18.2 | 28.5 | 18.6 | 15.5 | 9.9 |
Arkansas | 82.27 | 9,220 | 100.0 | 3.2 | 7.2 | 18.2 | 28.4 | 18.3 | 15.4 | 9.3 |
Georgia | 80.44 | 21,969 | 100.0 | 3.2 | 6.5 | 19.6 | 32.4 | 19.3 | 12.1 | 6.9 |
South Carolina | 80.18 | 13,211 | 100.0 | 3.5 | 5.9 | 19.3 | 31.8 | 22.7 | 11.9 | 4.9 |
North Carolina | 79.77 | 23,782 | 100.0 | 2.7 | 6.7 | 20.8 | 32.6 | 20.3 | 11.5 | 5.4 |
Mississippi | 78.48 | 10,470 | 100.0 | 6.2 | 8.4 | 19.7 | 30.2 | 15.9 | 12.2 | 7.4 |
Virgin Islands | 77.23 | 31 | 100.0 | 6.5 | 3.2 | 22.6 | 32.2 | 25.8 | 6.5 | 3.2 |
American Samoa | 76.00 | 1 | 100.0 | 0 | 0 | 0 | 100.0 | 0 | 0 | 0 |
Puerto Rico | 63.50 | 4,109 | 100.0 | 26.1 | 16.8 | 18.3 | 22.7 | 8.6 | 5.4 | 2.1 |
Guam | 44.00 | 1 | 100.0 | 0 | 0 | 100.0 | 0 | 0 | 0 | 0 |
Abroad | 96.00 | 2,188 | 100.0 | .6 | 1.0 | 6.9 | 20.2 | 22.0 | 28.8 | 20.5 |
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 |
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Total | $76.19 | 9,738,500 | 100.0 | 5.1 | 11.9 | 11.3 | 15.8 | 15.9 | 13.4 | 14.1 | 12.5 |
Connecticut | 85.02 | 150,978 | 100.0 | 2.6 | 5.5 | 8.7 | 13.2 | 16.2 | 16.5 | 19.5 | 17.8 |
Michigan | 84.37 | 399,745 | 100.0 | 3.3 | 7.8 | 9.5 | 13.0 | 13.2 | 13.2 | 19.2 | 20.8 |
New Jersey | 83.49 | 347,992 | 100.0 | 3.1 | 6.8 | 9.1 | 13.9 | 15.8 | 15.7 | 18.3 | 17.3 |
New York | 81.56 | 1,031,139 | 100.0 | 3.2 | 7.8 | 9.5 | 14.8 | 17.1 | 15.6 | 16.4 | 15.6 |
Pennsylvania | 81.09 | 643,266 | 100.0 | 3.6 | 8.7 | 9.2 | 14.4 | 16.7 | 14.9 | 17.3 | 15.2 |
Illinois | 81.04 | 557,805 | 100.0 | 3.6 | 9.1 | 9.7 | 14.2 | 15.8 | 14.9 | 16.5 | 16.2 |
Ohio | 80.73 | 501,089 | 100.0 | 3.8 | 9.6 | 10.2 | 14.5 | 14.8 | 13.0 | 16.7 | 17.4 |
Massachusetts | 79.65 | 333,497 | 100.0 | 3.2 | 7.4 | 10.1 | 16.4 | 19.2 | 16.0 | 15.3 | 12.4 |
Washington | 78.44 | 169,201 | 100.0 | 3.9 | 10.4 | 11.4 | 15.3 | 15.3 | 13.5 | 16.6 | 13.6 |
Rhode Island | 78.15 | 58,394 | 100.0 | 3.7 | 6.6 | 10.8 | 17.3 | 20.0 | 17.3 | 15.0 | 9.3 |
Arizona | 77.96 | 58,798 | 100.0 | 5.2 | 10.9 | 11.0 | 14.6 | 14.6 | 13.8 | 15.6 | 14.3 |
Wisconsin | 77.89 | 247,839 | 100.0 | 4.2 | 10.9 | 11.1 | 16.1 | 15.2 | 13.1 | 15.2 | 14.2 |
Florida | 77.86 | 369,480 | 100.0 | 5.2 | 10.0 | 11.4 | 14.7 | 15.2 | 14.2 | 16.2 | 13.1 |
Indiana | 77.74 | 268,166 | 100.0 | 4.2 | 11.3 | 11.0 | 15.3 | 15.5 | 14.0 | 15.2 | 13.5 |
Utah | 77.62 | 34,224 | 100.0 | 4.5 | 11.1 | 10.8 | 15.3 | 16.0 | 14.1 | 15.3 | 12.9 |
California | 77.60 | 829,690 | 100.0 | 4.5 | 10.2 | 12.0 | 15.6 | 15.5 | 13.7 | 15.0 | 13.5 |
Delaware | 77.44 | 22,241 | 100.0 | 5.0 | 10.6 | 10.5 | 15.9 | 16.6 | 13.9 | 14.3 | 13.2 |
Oregon | 77.16 | 121,904 | 100.0 | 3.9 | 10.6 | 12.3 | 16.2 | 15.6 | 13.4 | 16.1 | 11.9 |
Montana | 76.86 | 38,026 | 100.0 | 3.6 | 12.5 | 10.6 | 16.3 | 16.7 | 13.2 | 14.3 | 12.8 |
Nevada | 76.69 | 11,950 | 100.0 | 4.7 | 10.6 | 11.7 | 15.6 | 17.2 | 13.5 | 15.6 | 11.1 |
New Hampshire | 75.39 | 44,069 | 100.0 | 3.8 | 10.2 | 11.7 | 17.7 | 19.2 | 16.0 | 13.0 | 8.4 |
Maryland | 75.06 | 127,096 | 100.0 | 5.4 | 12.1 | 11.5 | 16.7 | 16.6 | 13.3 | 12.9 | 11.5 |
Wyoming | 74.90 | 15,705 | 100.0 | 4.6 | 12.3 | 10.8 | 17.1 | 18.3 | 13.6 | 14.0 | 9.3 |
Colorado | 74.69 | 82,974 | 100.0 | 4.7 | 12.8 | 11.8 | 16.3 | 16.9 | 13.9 | 13.4 | 10.2 |
Minnesota | 74.67 | 203,882 | 100.0 | 4.7 | 12.9 | 11.7 | 17.1 | 16.5 | 13.0 | 13.1 | 11.0 |
Iowa | 74.59 | 181,333 | 100.0 | 4.2 | 12.6 | 11.5 | 17.4 | 17.3 | 14.4 | 13.2 | 9.4 |
Alaska | 74.28 | 3,443 | 100.0 | 4.6 | 13.6 | 12.5 | 16.9 | 14.7 | 13.0 | 15.8 | 8.9 |
Idaho | 73.94 | 35,617 | 100.0 | 4.2 | 13.0 | 12.3 | 16.9 | 17.9 | 13.7 | 13.0 | 9.0 |
West Virginia | 73.82 | 96,837 | 100.0 | 5.4 | 14.5 | 11.1 | 15.6 | 17.0 | 12.6 | 13.9 | 9.9 |
Missouri | 73.33 | 272,479 | 100.0 | 5.4 | 13.1 | 12.4 | 17.2 | 17.1 | 12.9 | 11.8 | 10.1 |
Kansas | 72.68 | 129,384 | 100.0 | 4.6 | 14.3 | 12.8 | 17.4 | 16.7 | 13.2 | 11.9 | 9.1 |
North Dakota | 72.60 | 34,707 | 100.0 | 5.0 | 13.8 | 12.0 | 18.2 | 17.5 | 13.4 | 11.3 | 8.8 |
Nebraska | 72.38 | 90,909 | 100.0 | 4.3 | 14.1 | 12.4 | 17.9 | 18.0 | 14.3 | 11.1 | 7.9 |
Hawaii | 72.28 | 19,953 | 100.0 | 6.5 | 14.3 | 11.5 | 15.2 | 17.8 | 16.0 | 10.9 | 7.8 |
Vermont | 72.27 | 25,879 | 100.0 | 4.7 | 13.1 | 12.7 | 18.7 | 18.0 | 13.6 | 11.3 | 7.9 |
South Dakota | 71.59 | 40,529 | 100.0 | 4.8 | 14.6 | 12.2 | 18.2 | 18.2 | 13.8 | 11.1 | 7.1 |
Maine | 71.31 | 67,050 | 100.0 | 5.2 | 13.5 | 13.1 | 18.6 | 18.2 | 13.6 | 10.8 | 7.0 |
Dist. of Columbia | 71.06 | 34,329 | 100.0 | 6.1 | 15.6 | 12.1 | 17.4 | 17.5 | 12.1 | 10.7 | 8.5 |
Oklahoma | 69.87 | 121,742 | 100.0 | 7.2 | 16.1 | 13.4 | 17.0 | 15.9 | 11.5 | 10.3 | 8.6 |
New Mexico | 69.16 | 27,617 | 100.0 | 7.0 | 18.0 | 13.3 | 16.6 | 15.3 | 11.1 | 10.8 | 7.9 |
Texas | 68.49 | 388,215 | 100.0 | 8.1 | 16.8 | 13.8 | 17.4 | 15.6 | 10.8 | 9.5 | 8.0 |
Louisiana | 67.60 | 108,210 | 100.0 | 9.5 | 17.6 | 13.6 | 16.8 | 15.0 | 10.4 | 9.2 | 7.9 |
Virginia | 67.51 | 162,062 | 100.0 | 7.6 | 19.1 | 13.4 | 17.1 | 15.6 | 10.8 | 9.3 | 7.1 |
Kentucky | 67.06 | 161,064 | 100.0 | 7.3 | 18.4 | 14.3 | 18.4 | 15.8 | 10.2 | 9.2 | 6.4 |
Alabama | 64.96 | 132,760 | 100.0 | 10.2 | 21.1 | 13.5 | 16.8 | 14.3 | 9.3 | 8.0 | 6.8 |
North Carolina | 64.35 | 191,601 | 100.0 | 9.3 | 18.5 | 15.2 | 19.6 | 15.9 | 9.8 | 6.8 | 4.9 |
Georgia | 63.81 | 149,292 | 100.0 | 10.8 | 19.4 | 14.7 | 18.2 | 15.5 | 9.4 | 6.6 | 5.4 |
South Carolina | 63.65 | 84,574 | 100.0 | 10.4 | 20.4 | 14.1 | 17.8 | 15.3 | 10.6 | 7.0 | 4.4 |
Tennessee | 63.09 | 168,961 | 100.0 | 10.3 | 21.8 | 15.3 | 17.6 | 13.9 | 8.6 | 7.1 | 5.4 |
Arkansas | 62.13 | 103,714 | 100.0 | 10.1 | 22.9 | 15.2 | 18.0 | 14.7 | 8.1 | 6.4 | 4.6 |
Virgin Islands | 59.00 | 803 | 100.0 | 10.5 | 29.8 | 15.6 | 15.4 | 12.1 | 6.6 | 6.1 | 3.9 |
Mississippi | 57.59 | 97,981 | 100.0 | 12.8 | 28.3 | 15.1 | 17.6 | 12.2 | 6.2 | 4.5 | 3.3 |
Guam | 53.41 | 27 | 100.0 | 18.5 | 33.4 | 11.1 | 11.1 | 18.5 | 3.7 | 0 | 3.7 |
American Samoa | 50.33 | 3 | 100.0 | 0 | 33.3 | 33.3 | 33.3 | 0 | 0 | 0 | 0 |
Puerto Rico | 49.15 | 67,392 | 100.0 | 19.0 | 42.9 | 13.3 | 11.0 | 7.0 | 3.2 | 2.2 | 1.4 |
Abroad | 78.11 | 70,883 | 100.0 | 1.6 | 8.6 | 9.2 | 18.7 | 22.2 | 15.7 | 15.8 | 8.2 |