Social Security Anniversary: 9 Facts About the Protection it Provides
by Michele Johnson
This month marks the 80th anniversary of the Social Security Act, which was signed into law ensuring a basic level of financial security for retired workers and their families. It was developed to provide peace of mind that in the event of a disability,loss of a loved one and retirement that one would not go
into poverty. In reflecting upon the protection provided by Social Security, below are nine facts about the benefits.
- A foundation for retirement is formed through universal, guaranteed benefits.The number of seniors age 60-89 receiving benefits today or in the future is 97 percent. More than 40 million Americans are receiving retirement benefits based on their work history or a spouse’s work history.
- Helping protect American workers against a catastrophic loss of income due to disability. Social Security Disability Insurance helps provide money to beneficiaries to pay rent and buy food if they become unable to work due to a disability. 11 million Americans are currently receiving assistance. Twenty-two years was the average time beneficiaries worked, and 90 percent of currently employed workers 21-64 are covered by Social Security and have paid enough into the program to earn disability insurance.
- In the event of an untimely death, survivors insurance is helping ensure financial security for a worker’s family.Of those workers 20-49 in employment covered by Social Security benefits, 96 percent have worked and paid enough into the program to be covered by survivors insurance, protecting families and dependent children with this critical support.
- Reducing the rate of poverty for millions of Americans age 65 and older. Since the 1960’s the poverty rate for Americans 65 and older has fallen considerably. Without Social Security benefits the poverty rate would be more than 50 percent, while the actual level is 15 percent. Researchers find the lower rates are attributed to Social Security support.
- Beneficiaries 55 and older rely on Social Security as their primary source of income.Among the age group 55 and older, one third report Social Security as 90 percent of their income. Similarity, approximately half of beneficiaries 80 and older rely on these benefits as well.
- The most vulnerable workers are provided protection with Social Security.The share of worker’s earnings that Social Security replaces throughout their retirement is higher for workers with lower incomes during their career.
- Social Security is a major influence providing assistance to populations with lower lifetime income and minorities. Social Security accounts for at least 90 percent of income for 53 percent of Hispanics, 46 percent of African Americans, and 44 percent of Asian Americans in age group 65 and older receiving benefits; compared to 36 percent for the population as a whole.
- Especially important to women, Social Security benefits are essential due to lower lifetime earnings and higher odds for a longer lifespan into their 80’s and 90’s.The overwhelming majority of those receiving survivors’ benefits are women. Just over half of the population of those aged 62 and older are women and of those, 56 percent are collecting Social Security benefits.>/li>
- Shifts in traditional retirement plans places more significance on the guaranteed benefits of Social Security.26 years ago, approximately 70 percent of the employed were participating in retirement planning at work. In 2013, that number was only 30 percent. Benefits received from 401(k) plans and other contribution plans depend on investment returns and can run out during retirement, for those workers, Social Security may be the only source for guaranteed income.
On this Social Security Anniversary, the Obama Administration is dedicated to providing Social Security benefits as a rock solid guaranteed that all Americans can count on today and in years ahead. It’s important for retirees, their families, those with disabilities and survivors to have protection of the benefits in the future and strengthened security in retirement.
The President validates his commitment by proposing the rebalancing of the Social Security system to tackle a long-foreseen imbalance between two Social Security trust funds which are paying benefits to retirees and to disabled workers. This would help ensure all those receiving benefits would not face abrupt and sudden cuts while policy makers are working to develop long term solutions to the issue.
Unnecessary cuts are possible in 2016 if lawmakers fail to act. The combined trusts have enough money to pay full disability benefits for nearly two decades. Those expecting benefits will be assured of their benefits while policies are being created. This Social Security Anniversary is a reminder that we need to protect benefits for seniors.
