General Information

Income of the Aged Population

Income Levels, 1962 and 2012

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 123% for married couples and 113% 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.

Median income of aged units, by marital status (in 2012 dollars)

SOURCES: Data for 1962 are from SSA, The Aged Population of the United States: The 1963 Social Security Survey of the Aged (1967). Data for 2012 are SSA calculations from the March 2013 Annual Social and Economic Supplement to the Current Population Survey.

NOTE: An aged unit is a married couple living together or a nonmarried person, which also includes persons who are separated or married but not living together.

Sources of Income, 1962 and 2012

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 50-year period, receipt of private pensions has tripled, and receipt of government pensions has increased by more than 50%. The proportion of couples and nonmarried persons aged 65 or older who had earnings was smaller in 2012 than in 1962.

Percentage of aged units receiving income, by source

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Table equivalent for chart. Percentage of aged units receiving income, by source

Source of income	1962	2012
Social Security	69	86
Asset income	54	51
Earnings	36	28
Private pensions	9	27
Government employee pensions	9	14

SOURCES: Data for 1962 are from SSA, The Aged Population of the United States: The 1963 Social Security Survey of the Aged (1967). Data for 2012 are SSA calculations from the March 2013 Annual Social and Economic Supplement to the Current Population Survey.

NOTE: An aged unit is a married couple living together or a nonmarried person, which also includes persons who are separated or married but not living together.

Shares of Aggregate Income, by Source, 1962 and 2012

In 1962, Social Security, earnings, income from assets, and government employee and private pensions made up only 85% of the aggregate total income of couples and nonmarried persons aged 65 or older, compared with 97% in 2012. The shares from Social Security, earnings, government employee pensions, and private pensions have increased since 1962, while the share from asset income has declined.

Aggregate income, by source

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Table equivalent for chart. Percentage distribution of aggregate income, by source, 1962 and 2012

Income source	1962	2012
Social Security	31	35
Earnings	29	34
Asset income	16	11
Government employee pensions	6	8
Private pensions	3	9
Other	15	3

SOURCES: Data for 1962 are from SSA, The Aged Population of the United States: The 1963 Social Security Survey of the Aged (1967). Data for 2012 are SSA calculations from the March 2013 Annual Social and Economic Supplement to the Current Population Survey.

NOTES: The unit of analysis is the aged unit, defined as a married couple living together or a nonmarried person, which also includes persons who are separated or married but not living together.

Data for 1962 have been revised to reflect a slight refinement of the income category definitions.

Relative Importance of Social Security, 2012

In 2012, 87% 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 52% of aged beneficiary couples and 74% of aged nonmarried beneficiaries. It was 90% or more of income for 22% of aged beneficiary couples and 47% 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 Supplemental Nutrition Assistance Program (or SNAP, formerly known as food stamps) benefits and housing and energy assistance.

Percentage of aged units receiving Social Security benefits, by relative importance of benefits to total income

SOURCE: SSA calculations from the March 2013 Annual Social and Economic Supplement to the Current Population Survey.

NOTE: An aged unit is a married couple living together or a nonmarried person, which also includes persons who are separated or married but not living together.

Poverty Status Based on Family Income, 2012

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 16.5% to 20.6%. Married persons have the lowest poverty rates, with 4.4% poor and 2.8% near poor. Overall, 9.1% are poor and 5.5% are near poor.

Poverty status, by marital status, sex of nonmarried persons, race, and Hispanic origin

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Table equivalent for chart. Poverty status, by marital status, sex of nonmarried persons, race, and Hispanic origin, 2012 (in percent)

Characteristic	Poor	Near poor
All persons	9.1	5.5
By marital status
Married	4.4	2.8
Nonmarried men	12.1	7.8
Nonmarried women	16.5	9.5
By race and Hispanic origin
White alone a	7.8	5.1
Black alone a	18.2	8.9
Hispanic	20.6	8.8

SOURCE: SSA calculations from the March 2013 Annual Social and Economic Supplement to the Current Population Survey.

a. Current Population Survey respondents may identify themselves in more than one racial group. The “white alone” and “black alone” categories reflect respondents who reported only one race.

OASDI Program

Earnings in Covered Employment, 1937–2013

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 163 million workers with earnings in Social Security–covered employment in 2013, about 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 83% of earnings in covered employment were taxable in 2013, compared with 92% in 1937.

Taxable earnings as a percentage of earnings in covered employment and percentage of workers with maximum taxable earnings, selected years

SOURCE: SSA, Office of the Chief Actuary.

Insured Status, 1970–2013

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 FRA.

Insured Status, by Sex, 1970 and 2013

Although men are more likely than women to be insured, the gender gap is shrinking. The proportion of men who are insured has declined slightly since 1970, with 89% fully insured and 78% insured for disability in 2013. By contrast, the proportion of women who are insured has increased dramatically—from 63% to 84% fully insured and from 41% to 73% insured for disability.

Percentage of population in the Social Security area fully insured and insured for disability benefits, by sex

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Table equivalent for chart. Percentage of population in the Social Security area fully insured and insured for disability benefits, by sex

Sex	1970	2013
Fully insured
Men	93	89
Women	63	84
Insured for disability a
Men	84	78
Women	41	73

SOURCE: SSA, 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 U.S. armed forces abroad and their dependents; noncitizens living abroad who are insured for Social Security benefits; and all other U.S. citizens abroad.

Figures are subject to revision.

a. Insured for disability excludes those who have reached FRA.

New Benefit Awards, 2013

Benefits were awarded to about 5.5 million persons; of those, 50% were retired workers and 16% were disabled workers. The remaining 34% 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 FRA.

New awards, 2013

SOURCE: SSA, Master Beneficiary Record, 100 percent data.

NOTE: Totals do not necessarily equal the sum of rounded components.

New Awards to Workers, 1973–2013

Awards to retired workers have increased considerably over the past four decades, and the increase in awards to disabled workers is nearly as large in proportional terms. The annualized rate of increase over the period from 1973 to 2013 is 1.6% for retired workers and 1.4% for disabled workers. The annual number of awards to retired workers rose from 1.5 million in 1973 to 2.8 million in 2013, while for disabled workers it increased from 492,000 in 1973 to 869,000 in 2013.

New awards to retired and disabled workers

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Table equivalent for chart. New awards to retired and disabled workers (in thousands)

Year	Retired workers	Disabled workers
1973	1,493.19	491.62
1974	1,413.15	535.98
1975	1,505.75	592.05
1976	1,475.77	551.46
1977	1,593.63	568.87
1978	1,472.79	464.42
1979	1,590.85	416.71
1980	1,612.67	396.56
1981	1,578.99	351.85
1982	1,618.41	297.13
1983	1,669.74	311.55
1984	1,607.37	362.00
1985	1,690.49	377.37
1986	1,734.25	416.87
1987	1,681.72	415.85
1988	1,654.07	409.49
1989	1,656.74	425.58
1990	1,664.75	467.98
1991	1,695.35	536.43
1992	1,707.95	636.64
1993	1,661.28	635.24
1994	1,625.35	631.87
1995	1,609.17	645.83
1996	1,581.45	624.34
1997	1,718.62	587.42
1998	1,631.51	608.13
1999	1,690.02	620.49
2000	1,960.65	621.65
2001	1,779.23	691.31
2002	1,812.55	750.00
2003	1,791.32	777.46
2004	1,883.06	795.78
2005	2,000.00	830.00
2006	1,999.00	799.00
2007	2,036.00	805.00
2008	2,279.00	877.00
2009	2,740.00	971.00
2010	2,634.00	1,027.00
2011	2,578.00	999.00
2012	2,735.01	960.22
2013	2,794.29	868.97

SOURCE: SSA, Master Beneficiary Record, 100 percent data.

Beneficiaries in Current-Payment Status, December 2013

Nearly 58 million beneficiaries were in current-payment status, that is, they were being paid a benefit. Sixty-five percent of those beneficiaries were retired workers and 15% were disabled workers. The remaining 20% were survivors or the spouses and children of retired or disabled workers.

Beneficiaries, by type

SOURCE: SSA, Master Beneficiary Record, 100 percent data.

Average Benefit Amounts, 2013

Benefits payable to workers who retire at the FRA and to disabled workers are equal to 100% of the PIA (subject to any applicable deductions). At the FRA, 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.

Beneficiaries, by Age, December 2013

About four-fifths of all OASDI beneficiaries in current-payment status were aged 62 or older, including 22 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.

Beneficiaries, by age

SOURCE: SSA, Master Beneficiary Record, 100 percent data.

Age of Disabled and Retired Workers, 1960–2013

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 2013, it had risen to 53.5. By contrast, the average age of retired workers has changed little over time, rising from 72.4 in 1960 to 73.7 in 2013.

Average age of disabled-worker and retired-worker beneficiaries, selected years

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Table equivalent for chart. Average age of disabled-worker and retired-worker beneficiaries, selected years

Year	Retired-worker beneficiaries	Disabled-worker beneficiaries
1960	72.4	57.2
1965	72.5	54.7
1970	72.3	54.2
1975	72.3	53.8
1980	72.4	53.2
1985	72.8	52.1
1990	73.1	50.5
1995	73.6	49.8
2000	73.9	50.8
2005	73.9	51.8
2010	73.7	52.8
2013	73.7	53.5

SOURCE: SSA, Master Beneficiary Record, 10 percent sample for 1990–2005 and 100 percent data for all other years.

Beneficiaries, by Sex, December 2013

Of all adults receiving monthly Social Security benefits, 45% were men and 55% were women. Eighty percent of the men and 63% of the women received retired-worker benefits. Fourteen percent of the women received survivor benefits.

Adult beneficiaries, by type of beneficiary and sex

SOURCE: SSA, Master Beneficiary Record, 100 percent data.

NOTE: Totals do not necessarily equal the sum of rounded components.

a. Less than 0.5 percent of men received benefits as survivors (widowers or fathers) or as spouses of retired and disabled workers.

Average Monthly Benefit, by Sex, December 2013

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.

Women Beneficiaries, 1940–2013

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 50% in 2013. 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 48% in 2013.

Women beneficiaries as a percentage of retired workers and disabled workers, selected years

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Table equivalent for chart. Women as a percentage of retired worker and disabled worker beneficiaries, selected years

Year	Retired workers	Disabled workers
1940	11.6	--
1950	17.1	--
1957	--	19.1
1960	35.3	21.8
1970	42.4	28.4
1980	46.5	32.6
1990	47.7	34.7
2000	48.2	43.3
2010	49.0	47.0
2013	50.0	48.0
NOTE: -- = not available.

SOURCE: SSA, Master Beneficiary Record, 100 percent data.

Women with Dual Entitlement, 1960–2013

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 23% in 2013. 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 27% in 2013.

Women aged 62 or older, by basis of entitlement, selected years

SOURCE: SSA, Master Beneficiary Record. All data for 2005 and dual entitlement data for 1995 and 2000 are based on a 10 percent sample. All other years are 100 percent data.

Child Beneficiaries, December 2013

More than 3.4 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 $541.

Number of and average monthly benefit for children of worker beneficiaries

Number of children of—

Average monthly benefit for children of—

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Table equivalent for chart. Number and average monthly benefit for children receiving OASDI, by type of beneficiary, December 2013

Type of beneficiary	Number (thousands)	Average monthly benefit (dollars)
Children of retired workers	346	620
Children of disabled workers	1,771	333
Children of deceased workers	1,265	810

SOURCE: SSA, Master Beneficiary Record, 100 percent data.

SSI Program

Number of Recipients, 1974–2013

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 2013, the number of recipients was about 8.4 million. Of this total, almost 4.9 million were between the ages of 18 and 64, 2.1 million were aged 65 or older, and 1.3 million were under age 18.

Persons receiving federally administered SSI payments, December

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Table equivalent for chart. Persons receiving federally administered SSI payments, December (in millions)

Year	Total	Under 18	18–64	65 or older
1974	4.0	0.1	1.5	2.4
1975	4.3	0.1	1.7	2.5
1976	4.2	0.1	1.7	2.4
1977	4.2	0.1	1.7	2.4
1978	4.2	0.2	1.7	2.3
1979	4.1	0.2	1.7	2.2
1980	4.1	0.2	1.7	2.2
1981	4.0	0.2	1.7	2.1
1982	3.9	0.2	1.7	2.0
1983	3.9	0.2	1.7	2.0
1984	4.0	0.2	1.8	2.0
1985	4.1	0.2	1.9	2.0
1986	4.3	0.2	2.0	2.0
1987	4.4	0.3	2.1	2.0
1988	4.5	0.3	2.2	2.0
1989	4.6	0.3	2.3	2.0
1990	4.8	0.3	2.4	2.1
1991	5.1	0.4	2.6	2.1
1992	5.6	0.6	2.9	2.1
1993	6.0	0.7	3.1	2.1
1994	6.3	0.8	3.3	2.1
1995	6.5	0.9	3.5	2.1
1996	6.6	1.0	3.6	2.1
1997	6.5	0.9	3.6	2.1
1998	6.6	0.9	3.6	2.0
1999	6.6	0.8	3.7	2.0
2000	6.6	0.8	3.7	2.0
2001	6.7	0.9	3.8	2.0
2002	6.8	0.9	3.9	2.0
2003	6.9	1.0	4.0	2.0
2004	7.0	1.0	4.0	2.0
2005	7.1	1.0	4.1	2.0
2006	7.2	1.1	4.2	2.0
2007	7.4	1.1	4.2	2.0
2008	7.5	1.2	4.3	2.0
2009	7.7	1.2	4.5	2.0
2010	7.9	1.2	4.6	2.0
2011	8.1	1.3	4.8	2.1
2012	8.3	1.3	4.9	2.1
2013	8.4	1.3	4.9	2.1

SOURCE: SSA, Supplemental Security Record, 100 percent data.

Payment Amounts, by Age, December 2013

The average monthly federally administered SSI payment was $529. Payments varied by age group, ranging from an average of $631 for recipients aged under 18 to $425 for those aged 65 or older. The maximum federal benefit rate in December 2013 was $710 for an individual and $1,066 for a couple, plus any applicable state supplementation.

Average monthly federally administered SSI payment

SOURCE: SSA, Supplemental Security Record, 100 percent data.

NOTE: Amounts exclude retroactive payments.

Federally Administered Payments, December 2013

A total of 8.4 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.

Type of SSI payment

SOURCE: SSA, Supplemental Security Record, 100 percent data.

Basis for Eligibility and Age of Recipients, December 2013

Fourteen percent of SSI recipients received benefits on the basis of age and the rest qualified on the basis of disability. Twenty-five 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 FRA.

SSI recipients, by basis for eligibility and age

SOURCE: SSA, Supplemental Security Record, 100 percent data.

Percentage Distribution of Recipients, by Age, 1974–2013

The proportion of SSI recipients aged 65 or older has declined from 61% in January 1974 to 25% in December 2013. 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.

Percentage distribution of SSI recipients, by age, December

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Table equivalent for chart. Percentage distribution of SSI recipients, by age, December

Year	Under 18	18–64	65 or older
1974	1.8	37.6	60.6
1975	2.5	39.4	58.1
1976	3.0	40.5	56.6
1977	3.5	41.0	55.5
1978	3.9	41.4	54.6
1979	4.3	41.6	54.1
1980	4.6	41.8	53.6
1981	4.8	42.4	52.8
1982	5.0	42.9	52.1
1983	5.1	43.6	51.3
1984	5.3	44.2	50.6
1985	5.5	45.4	49.1
1986	5.6	47.1	47.3
1987	5.7	48.3	46.0
1988	5.7	49.3	44.9
1989	5.8	50.1	44.1
1990	6.4	50.9	42.7
1991	7.8	51.6	40.6
1992	10.0	52.3	37.7
1993	12.1	52.6	35.3
1994	13.4	53.0	33.7
1995	14.1	53.5	32.5
1996	14.4	54.0	31.6
1997	13.5	54.8	31.6
1998	13.5	55.5	31.0
1999	12.9	56.3	30.8
2000	12.8	56.7	30.5
2001	13.2	57.0	29.8
2002	13.5	57.1	29.4
2003	13.9	57.3	28.8
2004	14.2	57.5	28.3
2005	14.6	57.4	28.0
2006	14.9	57.4	27.7
2007	15.2	57.4	27.4
2008	15.3	57.6	27.0
2009	15.6	58.0	26.4
2010	15.7	58.5	25.8
2011	15.7	58.9	25.4
2012	15.9	58.9	25.2
2013	15.8	59.0	25.2

SOURCE: SSA, Supplemental Security Record, 100 percent data.

Recipients, by Sex and Age, December 2013

Overall, 53% of the approximately 8.4 million SSI recipients were women, but that percentage varied greatly by age group. Women accounted for 67% of the 2.1 million recipients aged 65 or older, 53% of the 4.9 million recipients aged 18–64, and 33% of the 1.3 million recipients under age 18.

SSI recipients, by sex and age

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Table equivalent for chart. Percentage distribution of SSI recipients by sex, by age, December 2013

Age	Men	Women
All ages	47	53
Under 18	67	33
18–64	47	53
65 or older	33	67

SOURCE: SSA, Supplemental Security Record, 100 percent data.

Other Income, December 2013

Almost 56 percent of SSI recipients aged 65 or older received OASDI benefits, as did 30.4% of those aged 18–64 and 7.6% of those under age 18. Other types of unearned income, such as income from assets, were reported most frequently among those under age 18 (20.4%) and those aged 65 or older (11.2%). Earned income was most prevalent (4.7%) among those aged 18–64.

Other income of SSI recipients, by source and age

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Table equivalent for chart. Percentage of SSI recipients with other income, by source and age, December 2013

Age	OASDI	Other unearned income	Earnings
All ages	33.2	10.2	3.1
Under 18	7.6	20.4	0.2
18–64	30.4	7.0	4.7
65 or older	55.9	11.2	1.3

SOURCE: SSA, Supplemental Security Record, 100 percent data.

Child Recipients, 1974–2013

In 1974, when the program began, 70,900 blind and disabled children were receiving SSI. That number increased to 955,000 in 1996, declined to 847,000 in 2000, and is now 1,321,681. 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 2013, blind and disabled children were receiving SSI payments averaging $631.

Number of children under age 18 receiving SSI

Average monthly SSI payment to children under age 18 ^a

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Table equivalent for chart. Number of children under age 18 receiving SSI, and average monthly SSI payment to children under age 18

Year	Number of children receiving SSI (in thousands)	Average monthly SSI payment a
1974	70.90	109.15
1975	107.03	141.09
1976	125.41	154.24
1977	147.36	170.03
1978	165.90	171.72
1979	177.31	193.26
1980	190.39	219.08
1981	194.89	240.84
1982	191.57	263.22
1983	198.32	280.96
1984	211.59	292.86
1985	227.38	301.26
1986	241.20	321.34
1987	250.90	327.27
1988	255.14	343.24
1989	264.89	357.64
1990	308.59	403.72
1991	397.16	446.05
1992	556.47	610.98
1993	722.68	460.54
1994	841.47	448.07
1995	917.05	447.57
1996	955.17	442.01
1997	879.83	433.83
1998	887.07	441.75
1999	847.06	450.13
2000	846.78	463.05
2001	881.84	476.09
2002	914.82	487.73
2003	959.38	490.63
2004	993.13	505.98
2005	1,036.50	522.80
2006	1,079.00	542.00
2007	1,121.00	555.00
2008	1,153.80	561.00
2009	1,199.79	593.00
2010	1,239.30	597.00
2011	1,277.00	601.00
2012	1,311.86	621.00
2013	1,321.68	631.00
SOURCE: SSA, Supplemental Security Record, 100 percent data.
NOTE: SSI = Supplemental Security Income.
a. As of 1998, these figures exclude retroactive payments.

SOURCE: SSA, Supplemental Security Record, 100 percent data.

a. As of 1998, these figures exclude retroactive payments.

Cross-Program Beneficiaries

All Beneficiaries, December 2013

About 63.2 million people received a payment from one or more programs administered by SSA. Most (54.8 million) received OASDI benefits only, about 5.6 million received SSI only, and 2.8 million received payments from both programs.

Distribution of all beneficiaries

SOURCES: SSA, Master Beneficiary Record and Supplemental Security Record, 100 percent data.

NOTES: OASDI beneficiaries who are entitled to both a primary and a secondary benefit (dual entitlement) are counted only once. SSI includes federal SSI payments and federally administered state supplementation.

Totals do not necessarily equal the sum of rounded components.

Beneficiaries Aged 65 or Older, December 2013

Benefits were paid to 41.7 million people aged 65 or older. Nearly 1.2 million received both OASDI and SSI.

Distribution of beneficiaries aged 65 or older, by program

SOURCES: SSA, Master Beneficiary Record and Supplemental Security Record, 100 percent data.

NOTES: OASDI beneficiaries who are entitled to both a primary and a secondary benefit (dual entitlement) are counted only once. SSI includes federal SSI payments and federally administered state supplementation.

Totals do not necessarily equal the sum of rounded components.

a. Includes persons who received dependent parent's benefits or mother's and father's benefits.

b. Includes 950,500 SSI beneficiaries aged 65 or older who are disabled or blind.

Disabled Beneficiaries Aged 18–64, December 2013

Payments were made to 12.9 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.

Distribution of disabled beneficiaries aged 18–64

SOURCES: SSA, Master Beneficiary Record and Supplemental Security Record, 100 percent data.

NOTES: OASDI beneficiaries who are entitled to both a primary and a secondary benefit (dual entitlement) are counted only once. SSI includes federal SSI payments and federally administered state supplementation.

Totals do not necessarily equal the sum of rounded components.

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 2013, the Old-Age and Survivors Insurance and Disability Insurance Trust Funds collected $855.0 billion in revenues. Of that amount, 85.5% was from payroll tax contributions and reimbursements from the General Fund of the Treasury and 2.5% was from income taxes on Social Security benefits. Interest earned on the government bonds held by the trust funds provided the remaining 12.0% of income. Assets increased in 2013 because total income exceeded expenditures for benefit payments and administrative expenses.

Sources and uses of Social Security revenues in 2013

SOURCE: 2014 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds, Table II.B1.

Social Security's Demographic Challenge

The 2014 Trustees Report projects that the number of retired workers will grow rapidly, as members of the post–World War II baby boom continue to reach retirement age in continuously increasing numbers. The population of retirees is projected to double in about 50 years. People are also living longer, and the birth rate is low. As a result, the Trustees project that the ratio of 2.8 workers paying Social Security taxes to each person collecting benefits in 2013 will fall to 2.1 to 1 in 2032. In 2010, tax and other noninterest income did not fully cover program cost, and the 2014 Trustees Report projects that this pattern will continue for at least 75 years if no changes are made to the program. However, the Trustees also project that redemption of trust fund assets will be sufficient to allow for full payment of scheduled benefits through 2032.

Ratio of covered workers to Social Security beneficiaries

SOURCE: 2014 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds, Table IV.B2 (intermediate assumptions).

The Long-Run Financial Outlook

Social Security is not sustainable over the long term at current benefit and tax rates. In 2010, the program paid more in benefits and expenses than it collected in taxes and other noninterest income, and the 2014 Trustees Report projects this pattern to continue for the next 75 years. The Trustees estimate that the combined OASI and DI trust fund reserves will be depleted by 2033. At that point, payroll taxes and other income will flow into the fund but will be sufficient to pay only about 75% of program costs. As reported in the 2014 Trustees Report, the projected shortfall over the next 75 years is 2.88% of taxable payroll.

Social Security income minus costs as a percentage of taxable payroll

SOURCE: 2014 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds, Table IV.B1 (intermediate assumptions).