Fast Facts & Figures About Social Security, 2021 (2024)

• • Tax rates
  • Taxes payable
  • Maximum taxable earnings
  • Work credits
• OASDI Benefits
  • Benefit payments
  • Cost-of-living adjustment
  • Full retirement age
  • Maximum benefit
  • Benefit formula bend points
  • Average wage index
  • Earnings test
• • Rates and limits
  • Disability program thresholds
• Trust Funds
• Poverty Thresholds and Administrative Data
  • Poverty thresholds
  • Expenses
  • Workload

• Note

• Earnings in Covered Employment
• Insured Status
• Insured Status, by Sex
• New Benefit Awards
• New Awards to Workers
• Beneficiaries in Current-Payment Status
• Average Benefit Amounts
• Beneficiaries, by Age
• Age of Disabled and Retired Workers
• Beneficiaries, by Sex
• Average Monthly Benefit, by Sex
• Women Beneficiaries
• Women with Dual Entitlement
• Child Beneficiaries

• Number of Recipients
• Payment Amounts, by Age
• Federally Administered Payments
• Basis for Eligibility and Age of Recipients
• Percentage Distribution of Recipients, by Age
• Recipients, by Sex and Age
• Other Income
• Child Recipients

• All Beneficiaries
• Beneficiaries Aged65 or Older
• Disabled Beneficiaries Aged18–64

• How Social Security Is Financed
• Social Security's Demographic Challenge
• The Long-Run Financial Outlook

Did You Know That…

69.8million people received benefits from programs administered by the Social Security Administration (SSA) in2020.

5.8million people were newly awarded Social Security benefits in2020.

55% of adult Social Security beneficiaries in2020 were women.

55.0 was the average age of disabled-worker beneficiaries in2020.

86% of Supplemental Security Income (SSI) recipients received payments because of disability or blindness in2020.

Cost-of-living adjustment, 2021: 1.30%

OASDI administrative expenses: Costs were 0.6% of contributions in calendar year 2020

We are suspending publication of the five charts that constitute the Income of the Aged Population section for the 2021 edition of Fast Facts and Figures as we continue to evaluate the adequacy of the charts' data source, the Annual Social and Economic Supplement (also known as the March Supplement) of the Current Population Survey (CPS). Findings from our initial evaluation are available in Dushi, Irena, and Brad Trenkamp. 2021. “Improving the Measurement of Retirement Income of the Aged Population.” ORES Working Paper No.116. Washington, DC: SSA, Office of Retirement and Disability Policy, Office of Research, Evaluation, and Statistics.

Earnings in Covered Employment, 1937–2020

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 175million workers with earnings in Social Security–covered employment in2020, 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 in2020, compared with 92% in 1937.

Insured Status, 1970–2020

The percentage of persons aged20 or older who are insured for benefits has changed very little in recent years. To be fully insured, a worker must have at least one work credit (quarter of coverage) for each year elapsed after age21 (but no earlier than 1950) and before the year in which he or she attains age62, 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 age31.) Disability benefits are available up to FRA.

Insured Status, by Sex, 1970 and 2020

Although men historically were more likely than women to be insured, the gender gap is shrinking. The proportion of men who are insured declined slightly from 1970 to 2020, with 91% fully insured and 79% insured for disability in2020. By contrast, the proportion of women who are insured increased dramatically—from 63% to 87% fully insured and from 41% to 75% insured for disability.

New Benefit Awards, 2020

Benefits were awarded to about 5.8million persons; of those, 58% were retired workers and 11% were disabled workers. The remaining 31% 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 to Workers, 1980–2020

Awards to retired workers increased considerably over the past four decades, at a higher rate than that by which awards to disabled workers increased. The annualized rate of increase over the period from 1980 to 2020 is 1.9% for retired workers and 1.1% for disabled workers. The annual number of awards to retired workers rose from 1.6million in 1980 to 3.4million in2020, while for disabled workers it increased from 397,000 in 1980 to 620,000 in2020.

Beneficiaries in Current-Payment Status, December2020

Sixty-five million beneficiaries were in current-payment status; that is, they were being paid a benefit. Seventy-one percent of those beneficiaries were retired workers and 13% were disabled workers. The remaining 16% of beneficiaries were survivors or the spouses and children of retired or disabled workers.

Average Benefit Amounts, 2020

Benefits payable to workers who retire at FRA and to disabled workers are equal to 100% of the PIA (subject to any applicable deductions). At 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 age60. Disabled widow(er)s can receive reduced benefits at age50. Spouses, children, and parents receive a smaller proportion of the worker's PIA than do widow(er)s.

Beneficiaries, by Age, December2020

More than four-fifths of all OASDI beneficiaries in current-payment status were aged62 or older, including 24% aged75–84 and 9% aged85 or older. About 11% were persons aged18–61 receiving benefits as disabled workers, survivors, or dependents. Another 4% were children under age18.

Age of Disabled and Retired Workers, 1960–2020

The average age of disabled-worker beneficiaries in current-payment status declined between 1960, when DI benefits first became available to persons younger than age50, and 2020. In 1960, the average age of a disabled worker was 57.2years. The rapid drop in average age in the following years reflects a growing number of awards to workers under 50. By1995, the average age fell to a low of 49.8, but by 2020, it rose to 55.0. By contrast, the average age of retired workers has changed little over time, rising from 72.4 in 1960 to 74.0 in2020.

Beneficiaries, by Sex, December2020

Of all adults receiving monthly Social Security benefits, 45% were men and 55% were women. Eighty-fourpercent of the men and 70% of the women received retired-worker benefits. Elevenpercent of the women received survivor benefits.

Average Monthly Benefit, by Sex, December2020

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 generally had higher average benefits.

Women Beneficiaries, 1940–2020

The proportion of women among retired-worker beneficiaries quadrupled between 1940 and 2020. The percentage climbed from 12% in 1940 to 47% in 1980, 48% in 1990, and 51% in2020. The proportion of women among disabled-worker beneficiaries more than doubled between 1957, when DI benefits first became payable, and 2020. The percentage rose steadily from 19% in 1957 to 35% in 1990 and 50% in2020.

Women with Dual Entitlement, 1960–2020

The proportion of women aged62 or older who are receiving benefits as dependents (that is, on the basis of their husbands' earnings record only) declined from 57% in 1960 to 19% in2020. 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) increased from 5% in 1960 to 24% in2020.

Child Beneficiaries, December2020

About 2.9million children under age18 and students aged18–19 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 $653.

Number of Recipients, 1974–2020

The Supplemental Security Income (SSI) program provides income support to needy persons aged65 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 50states and the District of Columbia.

Payments under SSI began in January1974, with 3.2million persons receiving federally administered payments. By December1974, this number had risen to nearly 4million and remained at about that level until the mid-1980s, then rose steadily, reaching nearly 6million in 1993 and 7million by the end of 2004. As of December2020, the number of recipients was about 8.0million. Of this total, 4.6million were between the ages of 18 and 64, 2.3million were aged65 or older, and 1.1million were under age18.

Payment Amounts, by Age, December2020

The average monthly federally administered SSI payment was $576. Payments varied by age group, ranging from an average of $675 for recipients aged under 18 to $468 for those aged65 or older. The maximum federal benefit rate in December2020 was $794 for an individual and $1,191 for a couple, plus any applicable state supplementation.

Federally Administered Payments, December2020

A total of 8.0million 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.

Basis for Eligibility and Age of Recipients, December2020

Fourteen percent of SSI recipients received benefits on the basis of age and the rest qualified on the basis of disability. Twenty-nine percent of the recipients were aged65 or older. In the SSI program, a disabled recipient is still classified as “disabled” after reaching age65. In the OASDI program, DI beneficiaries are converted to the retirement program when they attain FRA.

Percentage Distribution of Recipients, by Age, 1974–2020

The proportion of SSI recipients aged65 or older declined from 61% in January1974 to 29% in December2020. The overall long-term growth of the SSI program occurred because of an increase in the number of disabled recipients, most of whom are under age65.

Recipients, by Sex and Age, December2020

Overall, 52% of the approximately 8.0million SSI recipients were women, but that percentage varied greatly by age group. Women accounted for 65% of the 2.3million recipients aged65 or older, 50% of the 4.6million recipients aged18–64, and 32% of the 1.1million recipients under age18.

Other Income, December2020

Almost 57% of SSI recipients aged65 or older received OASDI benefits, as did 28.2% of those aged18–64 and 6.3% of those under age18. Other types of unearned income, such as income from assets, were reported most frequently among those under age18 (21.8%) and those aged65 or older (10.2%). Earned income was most prevalent (4.1%) among those aged18–64.

Child Recipients, December1974–2020

As of December of the program's first year, 1974, 70,900 blind and disabled children were receiving SSI. That number increased to about 955,000 in 1996, declined to about 847,000 in2000, and increased to 1,108,612 in2020. 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 December2020, blind and disabled children were receiving SSI payments averaging $675.

All Beneficiaries, December2020

About 69.8million people received a payment from one or more programs administered by SSA. Most (61.8million) received OASDI benefits only, 5.3million received SSI only, and 2.6million received payments from both programs.

Beneficiaries Aged65 or Older, December2020

Benefits were paid to 50.7million people aged65 or older. About 1.3million received both OASDI and SSI.

Disabled Beneficiaries Aged18–64, December2020

Payments were made to 12million people aged18–64 on the basis of their own disability. Sixty-two percent received disability payments from the OASDI program only, 28% received payments from the SSI program only, and 10% received payments from both programs.

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. In2020, the Old-Age and Survivors Insurance and Disability Insurance Trust Funds collected $1.1trillion in revenues. Of that amount, 89.6% was from payroll tax contributions and reimbursem*nts from the General Fund of the Treasury and 3.6% was from income taxes on Social Security benefits. Interest earned on the government bonds held by the trust funds provided the remaining 6.8% of income. Assets increased in2020 because total income exceeded expenditures for benefit payments and administrative expenses.

Social Security's Demographic Challenge

The 2021 Trustees Report projects that the number of retired workers will grow rapidly, as members of the post–World WarII baby boom continue to retire in increasing numbers. The number of retired workers is projected to double in about 50years. People are also living longer, and the birth rate is low. As a result, the Trustees project that the ratio of 2.7 workers paying Social Security taxes to each person collecting benefits in2020 will fall to 2.2 to 1 in2039. In2010, tax and other noninterest income did not fully cover program cost, and the 2021 Trustees Report projects that this pattern will continue for at least 75years 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 until2034.

The Long-Run Financial Outlook

Social Security is not sustainable over the long term at current benefit and tax rates. In2010, the program paid more in benefits and expenses than it collected in taxes and other noninterest income, and the 2021 Trustees Report projects this pattern to continue for the next 75years. The Trustees estimate that the combined OASI and DI trust fund reserves will be depleted by 2034. At that point, payroll taxes and other income will flow into the fund but will be sufficient to pay only about 78% of program costs. As reported in the 2021 Trustees Report, the projected shortfall over the next 75years is 3.54% of taxable payroll.