Fast Facts & Figures About Social Security, 2000

Did You Know That...

• We served more than 48 million people in 1999
• Social Security benefits were awarded to 3.9 million persons
• Social Security accounted for 38% of total income for aged persons
• Social Security kept 39% of aged persons out of poverty
• Social Security and Supplemental Security Income kept 1.1 million children out of poverty
• Women accounted for 58% of adult Social Security beneficiaries
• The average age of Disability Insurance beneficiaries has fallen from just over 57 in 1960 to 50.6
• Disability was the reason for paying 79% of SSI recipients

Abbreviations

AIME

Average Indexed Monthly Earnings

DI

Disability Insurance

HI

Hospital Insurance

OASDI

Old-Age, Survivors, and Disability Insurance

OASI

Old-Age and Survivors Insurance

ORES

Office of Research, Evaluation, and Statistics

PIA

Primary Insurance Amount

SSA

Social Security Administration

SSI

Supplemental Security Income

General Information, 2000

Income of the Aged Population

Size of Income

Median income of aged units, 1962 and 1998

Median annual income for both married couples and nonmarried persons increased markedly from 1962 (the earliest year for which data are available) to 1998. Even after adjusting for inflation, median income rose 95% for married couples and 98% for nonmarried persons.

Receipt of Income

Sources of Income, 1962 and 1998

Social Security benefits, which were the most common source of income in 1962, are now almost universal. The proportion of aged units with asset income, the next most common source, has grown from about one-half to nearly two-thirds. Over the 36-year period, receipt of private pensions has more than tripled and receipt of government pensions has increased by over 50%. A smaller proportion of couples and nonmarried persons aged 65 or older received earnings in 1998 than in 1962.

Shares of Aggregate Income

Proportion of income from various sources, 1962 and 1998

In 1962, Social Security, private and government employee pensions, income from assets, and earnings made up only 84% of the total income of the aged, compared with 97% in 1998. Although private pensions still accounted for only a small proportion of total income in 1998, they more than tripled their share in the period—from 3% to 10%. The share from earnings declined from 28% to 21%.

Reliance on Social Security

Importance of benefits, 1998

The OASDI program paid benefits to 90% of those aged 65 or older in 1998. It was the major source of income (providing at least 50% of total income) for 63% of the beneficiary units (couples or nonmarried persons), and it was the only source of income for 18%.

Benefits Affect Poverty

Benefits reduce poverty rates, 1998

About two-fifths of the aged were kept out of poverty by Social Security benefits in 1998, a proportion that varies little by marital status or race. Overall, 9% of aged beneficiaries were poor; without Social Security, the total poverty rate would have been 48%. (Data are based on family income rather than aged person income to conform to official measures of poverty.)

OASDI Program

Workers and Insured Status

Workers with taxable earnings, 1937–99

In 1999, 152 million workers had earnings in employment covered by the Social Security program. Of these workers, 6% had earnings that equaled or exceeded the maximum amount currently subject to Social Security taxes, compared with 3% when the program began and a peak of 35% in 1965. About 85% of the earnings of workers in covered employment were taxable in 1999, compared with 92% in 1937.

Workers and Insured Status

Insured workers, 1970–2000

Of persons aged 20 or older, the percentage insured for benefits has steadily increased over time. The percent permanently insured (those with enough covered work experience to qualify for retired-worker benefits at retirement age) rose from 50% in 1970 to 69% in 2000. The percentage fully insured increased from 77% to 88%. To be fully insured, a worker must have at least one quarter of coverage for each year elapsed after 1950 (or age 21, if later) and before the year in which he or she attains age 62 or becomes disabled. To be insured for disability, the worker must be fully insured and have at least 20 quarters of coverage during the last 40 quarters. (Requirements for currently insured status are somewhat different for persons younger than age 31.)

Workers and Insured Status

Insured status, by sex, 1970 and 2000

Although men are more likely than women to be insured, the gender gap is shrinking. The proportion of men insured has remained essentially stable, with 93% fully insured and about 73% insured for disability. By contrast, the proportion of women insured has increased dramatically—from 63% to 83% for those fully insured and from 33% to 60% for those insured for disability.

New Benefit Awards

Benefits awarded, 1999

Benefits were awarded to 3.9 million persons in 1999. Forty-three percent were retired workers and 16% were disabled workers. The remaining 41% were survivors and/or dependents of workers—that is, spouses and children of retired or disabled workers who received benefits based on the worker's earnings record.

New Benefit Awards

Benefits awarded to workers, 1960–99

Benefits awarded to retired workers have increased considerably since 1960 but proportionately much less than benefits to disabled workers. The patterns of growth have also differed. Retired-worker awards rose steadily during the first half of the period, then leveled off around 1980 and have since declined slightly. Disabled-worker awards increased rapidly until the late seventies, then declined considerably for about a decade, resuming their growth during the nineties.

Benefits in Current-Payment Status

Persons receiving monthly benefits, December 1999

More than 44 million persons were receiving monthly Social Security benefits in December 1999. Of these, the majority were retired workers.

Benefit Amounts

Average amount of newly awarded benefits and benefits in current-payment status, 1999

Benefits payable to workers who retire at the normal retirement age and to disabled workers are equal to 100% of the PIA (subject to any applicable deductions). At the normal retirement age, widows benefits are also payable at 100% of the insured worker's PIA. Nondisabled widows and widowers can receive reduced benefits at age 60. Disabled widow benefits are payable (with a greater reduction) at age 50. Spouses, children, and parents receive smaller proportions of the worker's PIA than widows do.

Benefit Amounts

Hypothetical benefit amounts, 2000

A covered worker who had worked continuously at low wages (45% of average national wages) and who claimed benefits at age 62 in January 2000 would have received a monthly benefit of $518. One who had earnings at or above the maximum amount subject to Social Security taxes and who claimed benefits at age 65 would have received $1,433.

Beneficiaries by Age

Age of persons receiving benefits, December 1999

Some 81% of all OASDI beneficiaries with benefits in current-payment status were aged 62 or older in December 1999. Among OASI beneficiaries, 93% were 62 or older. Among DI beneficiaries (disabled workers and their spouses and children), most were under age 62.

Beneficiaries by Age

Age of disabled-worker beneficiaries, 1960–99

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. By 1980, it had fallen to 53.2, and in 1999, the average age was 50.6 years.

Beneficiaries by Sex

Sex of persons receiving monthly benefits, December 1999

Of all adults receiving monthly Social Security benefits at the end of 1999, 42% were men and 58% were women. More than 80% of the men and more than 55% of the women received retired-worker benefits. Slightly less than one-fourth of the women received survivors benefits.

Beneficiaries by Sex

Average monthly benefit amounts, December 1999

Among retired and disabled workers who collected benefits based on their own work record, men received a higher average monthly benefit than women. For those who collected benefits based on another person's work record (spouses and survivors), women had higher average benefits.

Beneficiaries by Sex

Women-worker beneficiaries, 1940–99

The proportion of women among retired-worker beneficiaries has quadrupled since 1940. The proportion of women among disabled-worker beneficiaries has more than doubled since 1957, when benefits first became payable to disabled workers.

Dual Entitlement

Dual entitlement, 1960–99

The proportion of women aged 62 or older who are receiving benefits as dependents (that is, on the basis of their husband's earnings record only) has been declining—from 57% in 1960 to 35% in 1999. At the same time, the proportion of women with dual entitlement (that is, paid on the basis of both their own earnings record and that of their husband) has been increasing—from 5% in 1960 to 27% in 1999.

SSI Program

Recipients

Historical comparison, by age, 1974–99

Shortly after the SSI program began in 1974, the number of persons receiving federally administered payments rose to 4 million. It remained at about that level until the mid-1980s, then rose through the mid-1990s. In 1999, it stood at nearly 6.6 million.

Payment Amounts

Average monthly payments, by age group, December 1999

The average federally administered SSI payment was $369 in December 1999. Payments varied by age group, ranging from an average of $450 for those under 18 to $293 for recipients aged 65 or older.

Federally Administered Payments

Recipients by type of payment, December 1999

Over 6 million persons received federally administered SSI payments in December 1999. Most received federal SSI only. States have the option of supplementing the federal benefit rate and are required to do so if that rate does not equal the income the recipient would have had under the former state program.

Basis for Eligibility

Recipients by basis for eligibility and age, December 1999

One-fifth of SSI recipients have been awarded benefits on the basis of age; most of the rest on the basis of disability. One-third of the recipients were aged 65 or older. In the SSI program—unlike the OASDI program—a disabled recipient can be aged 65 or older. (DI beneficiaries are converted to the retirement program when they attain age 65.)

Recipients by Age

Historical comparison, by age, 1974–99

The proportion of SSI recipients aged 65 or older has declined from 61% in January 1974 to 31% in December 1999. The 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

Distribution by sex and age, December 1999

Overall, 59% of the SSI recipients in December 1999 were women, but this varied by age group. Women accounted for nearly three-fourths of recipients aged 65 or older, over half of those aged 18–64, and over a third of those under age 18.

Other Income

Type of other income received, December 1999

Nearly two-thirds of aged SSI recipients received OASDI benefits in December 1999, as did about one-third of those aged 18–64 and 7% of those under age 18. Other types of unearned income, such as veterans' pensions or income from assets, also occurred most frequently among those aged 65 or older (16%), while earned income was most prevalent (7%) among those 18–64.

OASDI and/or SSI

All Beneficiaries

Receipt of OASDI and SSI payments, December 1999

More than 48 million persons received a payment from Social Security in December 1999. Most (42.2 million) received OASDI benefits only; about 4.2 million received SSI only; and 2.4 million received payments from both programs.

Beneficiaries Aged 65 or Older

Receipt of OASI and/or SSI aged benefits, December 1999

Aged or survivors benefits were paid to 32.9 million persons aged 65 or older in December 1999. About 1.2 million of them received both OASI and SSI.

Disabled Beneficiaries

Receipt of disability payments, December 1999

Payments based on the beneficiary's own disability were made to 9.1 million persons under age 65 in December 1999. About 37% of them received payments from the SSI program only, 50% received payments from the OASDI program only, and 13% received payments from both programs.

Children and Social Security

Children and OASDI

Current receipt, December 1999

Over 3 million children under age 18 and students aged 18–19 received OASDI benefits in December 1999—about half of them as the children of deceased workers. These children had the highest average payments, in part because they are eligible to receive monthly benefits equal to 75% of the worker's PIA, whereas the children of retired or disabled workers may receive 50%. Overall, the average monthly benefit amount for children was $363.

Children and SSI

Recipients and payment amounts, 1974–99

In 1974 when the program began, there were 70,900 blind and disabled children receiving payments under SSI. Since then, that number has increased ten-fold. The relatively high average payment to children (compared with those made to blind and disabled adults) is due in part to a limited amount of other countable income. The peak in average monthly benefits in 1992 is due to retroactive payments resulting from the Sullivan v. Zebley decision.

SSA's Role in Reducing Poverty

Social Security's role in reducing poverty for children

In 1998, 7 million children were living in families receiving OASDI and/or SSI benefits. About 1.1 million children would have resided in families with incomes below the poverty line without these benefits. About 2.3 million children were still poor even though OASDI and SSI benefits improved their situation.