Social Security Statistics By Cost-Of-Living Adjustments, Revenue and Expenditure

Introduction

Social Security Statistics: Social Security is a government program that helps people in the U.S. with money when they retire, become disabled, or lose a family provider. It was made to give people and families a steady income, especially when they can’t work anymore or face tough times. In 2024, millions of Americans depend on Social Security to cover basic needs like food, housing, and healthcare.

Taxes from workers and employers pay for the program. Over time, people earn benefits based on how much they’ve worked and contributed to Social Security. This article includes several current trends and analyses from different insights that will explain the main parts of Social Security, how it works, and why it’s so important in 2024.

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• Almost 68 million Americans, including retirees, disabled individuals, and survivors, will receive Social Security benefits in 2024.
• Social Security Statistics show that the Social Security program is projected to spend over USD 1.5 trillion by the end of this year, accounting for nearly 5% of the U.S. Gross Domestic Product (GDP).
• The monthly average Social Security retirement benefit is around USD 1,850.
• Social Security beneficiaries will see a 3.2% COLA increase, which is intended to help retirees and other beneficiaries keep up with inflation.
• Based on 2024 projections, the Social Security Trust Fund will depleted by 2034, after which payroll taxes will cover only about 80% of promised benefits.
• In 2024, about 9 million disabled workers and families will get SSDI benefits, averaging USD 1,480 monthly.
• Social Security Statistics further states that nearly 5.9 million survivors, including spouses and children, will receive Social Security benefits.
• Social Security funding comes from a 12.4% payroll tax, split between employers and employees, with a USD 168,600 capitalization rate.
• In 2024, men retiring at 65 will live about 84 years, while women will live around 87 years.
• Social Security will make up 23% of federal spending, showing its importance in the national budget.

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Facts Sheet Of Social Security

• Social Security was created by President Franklin Roosevelt on August 14, 1935, 88 years ago, and is considered one of the most successful programs today.
• Over 1 million workers signed up for Social Security numbers within just eight days after the program started.
• In 1940, a 65-year-old could expect to live 14 more years; today, they can live over 20 years.
• The number of Americans aged 65 years and above will grow from 61 million in 2023 to 77 million by 2035.
• Social Security Statistics also reported that in 2023, there were 2.7 workers for each Social Security beneficiary, but this number will drop to 2.4 by the end of 2035.
• In the fiscal year 2024, nearly 68 million Americans will receive Social Security benefits, totaling USD 1.5 trillion paid during the year.
• For most people over 65, Social Security is their main source of income.
• Around 184 million workers will be employed under jobs covered by OASDI.

General Social Security Statistics

• In February 2024, around 67 million people, or 1 in 5 U.S. residents, received Social Security benefits.
• By 2024 ending, the more people earn up to USD 168,600, the more benefits they will receive.
• As per Social Security Administration estimates, about 97% of people aged 60 to 89 either get or will get Social Security benefits.
• In February 2024, the average monthly amount was around USD 1,862, which amounts to about USD 22,344 annually.
• In 2024, Social Security will cover about 39% of an individual’s average previous income when they retire at 65.

(Source: pgpf.org)

• As per Social Security Statistics, in 2023, Social Security spending was approximately USD 1.3 trillion.
• This program supports around 66 million beneficiaries, such as retirees, disabled workers, and survivors of deceased workers.
• Its funding primarily comes from payroll taxes, with workers and employers each contributing 6.2% of wages up to a certain limit.

Programs Offered Under Social Security

• Old-Age and Survivors Insurance (OASI)
• Disability Insurance (DI)
• Supplemental Security Income (SSI)
• Medicare (Social Security-related)
• Survivor Benefits
• Special Veterans Benefits
• Social Security Retirement Earnings Test

Annual Social Security Statistics By Cost-Of-Living Adjustments (COLA)

(Reference: g.foolcdn.com)

• The 2024 COLA of 3.2% is higher than the 10-year average of 2.8% and the third-largest increase recently.
• Starting in January, Social Security benefits increased by over USD 140 per month on average.
• The benefit increases planned for next year in 2023 will be smaller than the 8.7% rise in beneficiaries, which was the biggest increase in 40 years.
• In 2022, beneficiaries received a 5.9% increase.

The table below shows the average Social Security benefit comparison paid to different groups of beneficiaries:

Distribution Of All Beneficiaries

(Reference: ssa.gov)

• As of December 2023, OASDI beneficiaries who get benefits from more than one worker’s earnings recorded a share of 90%.
• In the same duration, the beneficiary share of OASDI and SSI is 3%, followed by SSI only (7%).
• Social Security Statistics show that around 71.6 million people got payments from one or more programs run by the Social Security Administration.
• Most people, around 64.2 million, received only OASDI benefits, 4.9 million received only SSI, and 2.5 million received both.

Social Security Statistics By Revenue And Expenditure

(Source: ssa.gov)

• The overall revenue received from different sources for the Social Security program in 2024 was approximately USD 1.35 trillion.
• Out of this, 90.1% of the share will be generated from payroll taxes.
• Around 5% came from interest, and 3.8% of the total revenue came from tax benefits.
• Social Security Statistics further elaborates that the total expenditure in the first quarter of 2024 resulted in USD 1.39 trillion.
• Benefit payments captured the largest part of expenses, accounting for a share of 99.1%.
• However, only 0.5% of the budget goes to administrative expenses, and 0.4% is used for railroad retirement financial interchange expenses.

Social Security Beneficiaries Statistics

(Reference: cbpp.org)

• The above graph shows that around 3% of young survivors received beneficiaries in January 2024.
• Furthermore, other shares of beneficiary recipients were disabled workers and dependents (13%) and retired workers, dependents, and widows (84%).

Annual Benefits And Earnings For Workers Retiring At 65 Years

(Reference: cbpp.org)

• A low-earning retiree at 65 in 2024 will receive USD 15,477 annually, while an average earner will receive USD 29,813 annually.
• Social Security Statistics also show that others’ earnings levels based on past average earnings and benefits are represented respectively as Medium (USD 66,251 & USD 25,544), High (USD 106,002 & USD 33,769), and Maximum (USD 163,084 and USD 41,201).

Social Security Benefits Statistics, August 2024

In the United States of America:

Social Security Statistics By Gender

• Women make up the majority of Social Security beneficiaries, with approximately 55% of total beneficiaries being female in 2024.
• Men represent 45% of beneficiaries, generally receiving higher benefits due to higher lifetime earnings.
• During the same period, the average monthly benefit for men is around USD 2,000, while for women, it is approximately USD 1,650.

By Ethnicity, 2024

Eligibility Statistics By Social Security Age Group

Social Security Benefits By Low-Income Seniors

(Reference: pgpf.org)

• The above graph mentions that 81% of low-income seniors rely on the lowest quintile income range, which is under USD 13,499.
• Furthermore, 81% of low-income seniors depend on the second quintile, which ranges between USD 13,499 and USD 23,592.
• On the other hand, other low-income seniors rely on Social Security benefits, followed by 61% (middle quintile), 39% (fourth quintile) and 15% (highest quintile).

Workers Per OASI (Old-Age and Survivors Insurance) Beneficiary Ratio

(Reference: pgpf.org)

• In 2024, the ratio of workers paying into Social Security per beneficiary under the OASI program is about 3.1, which has decreased from 2004, resulting in 4.0 workers per beneficiary.
• Meanwhile, in 2044, it is expected to drop further, reaching around 2.6 workers per beneficiary.

OASI Trust Fund Statistics

(Source: pgpf.org)

• From 2024 to 2033, asset reserves as a percentage of the annual cost will steadily decline, resulting in asset reserves expected to be around 200% of the annual cost in 2024.
• Similarly, asset reserves of annual cost shares in the coming year are expected to be 2025 (179%), 2026 (157%), 2027 (136%), 2028 (115%), 2029 (95%), 2030 (75%), 2031 (55%), 2032 (36%) and 2033 (0%).
• As per Social Security Statistics, the total projected income for the OASI Trust Fund is approximately USD 1.07 trillion.
• Moreover, payroll taxes are expected to contribute around USD 945 billion to the OASI Trust Fund, accounting for about 88% of the total OASI income.
• On the other hand, payroll taxes are expected to contribute around USD 945 billion to the OASI Trust Fund, accounting for about 88% of the total OASI income.
• In 2024, this source will generate up to USD 60 billion in revenue for the OASI Trust Fund.

OASDI Beneficiaries Statistics By States, 2024

California captured the highest number of OASDI beneficiaries in 2024, with about 6.3 million recipients.

The table below represents the other state’s analyses:

Social Security Retirement Statistics By Spending And Revenues

(Source: pgpf.org)

Social Security Statistics By Disability Benefits

• As of 2024, approximately 8.7 million people receive Social Security Disability Insurance (SSDI) benefits.
• Meanwhile, the total spending on disability benefits will reach around USD155 billion by the end of the year.
• The average monthly benefit for disabled workers is expected to be about USD 1,483.
• On the other hand, disability benefits make up about 14-15% of all Social Security spending.
• On the other hand, in 2024, the approval rate for initial SSDI applications will be around 21% to 23%.

Top 10 States For Disability Benefits

• In March 2024, Social Security Statistics also show that the approval rating for Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) hearings in Oregon was 71.40%.

Furthermore, other top 9 countries in the U.S. with the highest approval rates that occurred at the same time are elaborated in the table below:

Number Of U.S. Retired Workers Receiving Social Security

(Reference: statista.com)

• The above Statista report analyses show that the number of retired workers getting Social Security benefits grew from about 34.59 million in 2010 to 50.15 million in 2023.
• The total number of retired workers receiving Social Security benefits will account for up to 51 million in 2024.

Share Of Women In Social Security Schemes In India By Type

(Reference: statista.com)

• In the financial year 2024, about 21% of new women joined ESIC.
• In contrast, around 20% of new women enrolled in EPF in India at the same time.

Key Supplemental Security Income (SSI) Statistics

• Social Security Statistics in 2024 reports that approximately 7.8 million people receive SSI benefits.
• This includes elderly individuals 65 and older, disabled adults, and disabled children under 18.
• In 2024, the average monthly SSI payment for an individual will be around USD 914, and the monthly federal SSI benefit will account for USD 943.
• The amount differs by state, with some states giving extra monthly payments between USD 10 and more than USD 200.

By Demographics

• Meanwhile, around 30% of SSI beneficiaries are aged 65 and older.
• The majority of SSI recipients, about 60%, are disabled adults those are aged between 18 and 64 years.
• Approximately 10% of SSI beneficiaries are disabled children under 18.
• In 2024, men and women make up about 45% and 55% of SSI recipients, respectively.
• Based on race, there are around 55% of white beneficiaries SSI recipients, followed by black (27%), Hispanic (18%), and racial groups (5%).

SSI Federal Payment Amounts For 2024

• In 2024, the maximum monthly federal amounts are USD 943 for individuals.
• Besides, USD 1,415 is for couples, and USD 472 is for essential persons.

Recipients annual amounts comparison between 2023 and 2024 are stated below:

Social Security Statistics By Medicare (Social Security-related)

• In 2024, Medicare helps about 65 million people, most of whom are 65 years old or older.
• Most people qualify for Medicare at age 65 if they have paid into Social Security for ten years.
• Medicare spending in 2024 will reach around USD 1.4 trillion, with a large share going to healthcare services.

(Source: pgpf.org)

• As per Social Security Statistics, both Social Security Trust Funds will run out by 2035, and then all Social Security benefits may be reduced by 20%.
• Moreover, the Old-Age & Survivors Insurance Trust Fund will reduce by 2034, which would cause a 23% reduction in benefits that same year.

Source Of Financing For Medicare

(Source: pgpf.org)

• A report published by the Peter G. Peterson Foundation states that in Medicare, General Funding was the largest source of financing in 2021, capturing a share of 46%, followed by Medicare Payroll Taxes (34%), Premiums (15%), and others (4%).
• It is estimated that in 2025, Medicare’s financing sources will include the General Fund (49%), Medicare Payroll Taxes (25%), Premiums (20%), and others (7%).

Types Of Medicare

How Long Will Social Security Last?

• The program can only pay full benefits until 2033; after that, it may not cover 100% of benefits.
• In future years, retirees will receive only 76% of their expected benefits unless changes are made.
• Social Security Statistics further elaborates that a typical dual-income couple retiring in 2033 would lose USD 17,400, and a single-income couple would lose USD 13,100.

Women And Social Security

• In 2024, 55% of Social Security beneficiaries are women.
• Social Security Statistics further states that in June 2023, the average monthly payment for women was USD 1,651, which is USD 187 less per month than men.
• On an annual basis, women receive about USD 2,244 less per year.
• In 2024, Social Security provided 90% or more of the total income for nearly 50% of elderly unmarried women.
• Nearly 35% of women begin claiming Social Security benefits at age 62, the earliest eligible age.
• About 5 million widows receive Social Security survivor benefits.

Social Security Tax Statistics

U.S. Top 10 States That Tax Social Security Benefits In 2024

Demand Influencing Factors For Social Security In 2024

• Aging Population: The growing number of retirees, particularly as Baby Boomers age, increases the demand for Social Security benefits. By 2024, over 10,000 people are expected to turn 65 every day.
• Life Expectancy: Longer life expectancy, especially among women, means retirees will draw Social Security benefits for more extended periods, increasing demand for the
  program.
• Economic Conditions: Economic downturns, inflation, or rising costs of living may drive more retirees to depend on Social Security as their main source of income. The 2024 3.2% COLA adjustment reflects such inflationary pressures.
• Labour Market Trends: Changes in employment patterns, such as an increase in part-time work or gig economy jobs, can affect Social Security contributions, which in turn influences the amount people are eligible to receive in retirement.
• Wage Growth: Slow wage growth affects how much workers contribute to Social Security, which can impact the overall fund’s ability to meet future demand.
• Policy Reforms: Legislative changes to Social Security (such as adjustments to full retirement age, taxation of benefits, or changes in COLA calculations) can influence when and how people claim benefits.
• Disability Rates: The rate of workers claiming Social Security Disability Insurance (SSDI) influences overall demand. In 2024, approximately 8.5 million disabled individuals are expected to receive SSDI benefits.
• Income Inequality: Widening income inequality may increase reliance on Social Security, particularly for low-income retirees with limited retirement savings.
• Marital Status and Family Dynamics: Survivor benefits and spousal benefits add to Social Security demand. The number of widows/widowers and dependents receiving benefits can vary with changes in family structures.
• State-Level Policies: Differences in state-level taxation of Social Security benefits can influence when and where retirees choose to claim benefits, affecting demand in specific regions.

Conclusion

Social Security continues to be a vital support for millions of Americans in 2024, giving important financial help to retirees, disabled workers, and survivors. However, the system is facing some challenges. The Trust Fund is expected to run out by 2033, leading to important discussions about how to keep the program strong.

As we approach 2024, the future of Social Security will depend on finding smart solutions, making necessary changes, and staying committed to protecting this important program for future generations.

Maitrayee Dey

Maitrayee, after completing her graduation in Electrical Engineering, transitioned into the world of writing following a series of technical roles. She specializes in technology and Artificial Intelligence, bringing her experience as an Academic Research Analyst and Freelance Writer, with a focus on education and healthcare under the Australian system. From an early age, writing and painting have been her passions, leading her to pursue a full-time career in writing. In addition to her professional endeavors, Maitrayee also manages a YouTube channel dedicated to cooking.

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