Social Security Quick Facts Archive
While jousting with some progressive liberal demoracists about the Social Security "crisis" I came across this information. Believe it or not I agreed with my liberal playmates. Hey, Big Bubba does not have a crisis. Two years from now and I start drawing $1500 per month in benefits. That will represent a whopping 25% of my retirement income, but, hey Big Bubba is happy. I am getting by without it so I say that will be 15 good days at the track, not counting tips. What crisis? Everything in Big Bubba's world is peachy keen. You nervous Nellies out there that do believe in a Social Security crisis may Big Bubba be so bold as to suggest you limit your ammo to that provided by the Social Security Administration? Those wild and crazy progressive liberal rocket surgeons would suspect and attack any source outside of their official U.S. Government teat.
For those who believe in crisis, enjoy!
1. Social Security will begin running a deficit by 2018.
Source: 2003 Social Security Board of Trustees Report ,Table VI.F2, p.168
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2. The average worker can expect a rate-of-return of less than 2% on his or her Social Security taxes. (Note: The source for this, Actuarial Note 144, Social Security Administration Office of the Chief Actuary, Table 4, is now a “broken link.” Perhaps you can find where it moved to, I haven’t.
Other Sources: The Heritage Foundation Social Security Research
Allen Greenspan’s social security testimony, Before the Committee on the Budget, U.S. Senate, January 28, 1999
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3. The Social Security payroll tax rate has grown from just 2 percent in 1949 to 12.4 percent today.
Source: Social Security Administration Testimony of James B. Lockhart, III Deputy Commissioner of Social Security, January 26, 2004
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4. Social Security faces an unfunded liability of more than $12.8 trillion.
Source: 2003 Social Security Board of Trustees Report. For explanation, see"Social Security Deficit Increases by Trillions," Cato Daily Commentary.
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5. "Saving" Social Security without individual accounts could require a 50% increase in Social Security taxes or a 27% cut in benefits.
Source:2003 Social Security Board of Trustees Report
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6. The Supreme Court ruled in Flemming v. Nestor that there is no legal right to Social Security benefits.
Source:Flemming V. Nestor, 363 U.S. 603, 610–11 (1960). The History Page Social Security Online.
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7. Social Security taxes have been raised more than 40 times since the program began.
Source: See legislation affecting Social Security and Medicare programs available on the Social Security Administration website.
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8. The maximum original Social Security tax was just $60. Today it is $11,000.
Source:Social Security Administration
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9. In 1950, there were 16 workers paying Social Security taxes for every retired person receiving benefits. Today there are 3.3. By 2030, there will be only 2.
Source:2003 Social Security Board of Trustees Report, Table IV.B2, p. 51
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10. 46 million Americans receive Social Security benefits, including 32 million retirees, 7 million survivors, and 7 million disabled workers.
Source: 2003 Social Security Board of Trustees Report, p. 2
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11. Social Security pays more than $450 billion in benefits each year. If nothing is done, by 2060, the combination of Social Security and Medicare will account for more than 71 percent of the federal budget.
Source: Statement of Thomas R. Saving (PDF), Public Trustee of the Social Security Board of Trustees before the Senate Special Committee on Aging, July 29, 2003.
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12. 18-to-34 year olds are more likely to believe in the existence of UFOs than in the future existence of Social Security.
Source: “Social Security: The Credibility Gap,” Third Millennium survey, conducted Sept. 1994.
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13. According to Gallup, reforming Social Security is a top priority for 33% of investors.
Source: The Gallup Organization, “Investor Optimism Increases for the Fourth Consecutive Month,” report released January 28, 2004.
We will have to take their word on this one. The information is available to current Gallup Organization subscribers only.
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14. Nearly 80% of Americans pay more in Social Security taxes than they do in federal income tax.
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15. Every two-year election cycle that we wait to reform Social Security costs an additional $320 billion.
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16. The full retirement age today is 65 years and four months. It rises by two months every year, gradually increasing to age 67 for people born after 1959.
Source: Social Security Administration
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17. By 2030, there will be 70 million Americans of retirement age--twice as many as today.
Source: Social Security Administration History of SSA 1993-2000, Chapter 3: Program Solvency
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18. The average monthly retirement benefit in 2003 was $879.70.
Source: Social Security Administration Social Security Administration
Note: I did not find that exact dollar amount. Down at the bottom of this link I found Estimated Average Monthly Social Security Benefits Payable in January 2003: $ 882 (Before
1.4% COLA) After: $895.
The above was slightly modified from material found at, Quick Fact Archive from the Cato Institute.
Here are some more interesting links.
National Center for Policy Analysis Social Security Reform without Illusion: The Five Percent Solution AGGIE
SOCIAL SECURITY Shortchanges African-Americans USA Today (Society for the Advancement of Education)
USA Today magazine, published in New York by the Society for the Advancement of Education, provides commentary and debate on US domestic issues and events. Topics include politics, ecology, education, business, media, literature, science, and religion.
The Power of Compound Interest The Congressional InstituteAndrew G. Biggs, Ph.D., The Congressional Institute, Inc., August 18, 1999
For those who believe in crisis, enjoy!
1. Social Security will begin running a deficit by 2018.
Source: 2003 Social Security Board of Trustees Report ,Table VI.F2, p.168
--------------------
2. The average worker can expect a rate-of-return of less than 2% on his or her Social Security taxes. (Note: The source for this, Actuarial Note 144, Social Security Administration Office of the Chief Actuary, Table 4, is now a “broken link.” Perhaps you can find where it moved to, I haven’t.
Other Sources: The Heritage Foundation Social Security Research
Allen Greenspan’s social security testimony, Before the Committee on the Budget, U.S. Senate, January 28, 1999
--------------------
3. The Social Security payroll tax rate has grown from just 2 percent in 1949 to 12.4 percent today.
Source: Social Security Administration Testimony of James B. Lockhart, III Deputy Commissioner of Social Security, January 26, 2004
--------------------
4. Social Security faces an unfunded liability of more than $12.8 trillion.
Source: 2003 Social Security Board of Trustees Report. For explanation, see"Social Security Deficit Increases by Trillions," Cato Daily Commentary.
--------------------
5. "Saving" Social Security without individual accounts could require a 50% increase in Social Security taxes or a 27% cut in benefits.
Source:2003 Social Security Board of Trustees Report
--------------------
6. The Supreme Court ruled in Flemming v. Nestor that there is no legal right to Social Security benefits.
Source:Flemming V. Nestor, 363 U.S. 603, 610–11 (1960). The History Page Social Security Online.
--------------------
7. Social Security taxes have been raised more than 40 times since the program began.
Source: See legislation affecting Social Security and Medicare programs available on the Social Security Administration website.
--------------------
8. The maximum original Social Security tax was just $60. Today it is $11,000.
Source:Social Security Administration
--------------------
9. In 1950, there were 16 workers paying Social Security taxes for every retired person receiving benefits. Today there are 3.3. By 2030, there will be only 2.
Source:2003 Social Security Board of Trustees Report, Table IV.B2, p. 51
--------------------
10. 46 million Americans receive Social Security benefits, including 32 million retirees, 7 million survivors, and 7 million disabled workers.
Source: 2003 Social Security Board of Trustees Report, p. 2
--------------------
11. Social Security pays more than $450 billion in benefits each year. If nothing is done, by 2060, the combination of Social Security and Medicare will account for more than 71 percent of the federal budget.
Source: Statement of Thomas R. Saving (PDF), Public Trustee of the Social Security Board of Trustees before the Senate Special Committee on Aging, July 29, 2003.
--------------------
12. 18-to-34 year olds are more likely to believe in the existence of UFOs than in the future existence of Social Security.
Source: “Social Security: The Credibility Gap,” Third Millennium survey, conducted Sept. 1994.
--------------------
13. According to Gallup, reforming Social Security is a top priority for 33% of investors.
Source: The Gallup Organization, “Investor Optimism Increases for the Fourth Consecutive Month,” report released January 28, 2004.
We will have to take their word on this one. The information is available to current Gallup Organization subscribers only.
--------------------
14. Nearly 80% of Americans pay more in Social Security taxes than they do in federal income tax.
--------------------
15. Every two-year election cycle that we wait to reform Social Security costs an additional $320 billion.
--------------------
16. The full retirement age today is 65 years and four months. It rises by two months every year, gradually increasing to age 67 for people born after 1959.
Source: Social Security Administration
--------------------
17. By 2030, there will be 70 million Americans of retirement age--twice as many as today.
Source: Social Security Administration History of SSA 1993-2000, Chapter 3: Program Solvency
--------------------
18. The average monthly retirement benefit in 2003 was $879.70.
Source: Social Security Administration Social Security Administration
Note: I did not find that exact dollar amount. Down at the bottom of this link I found Estimated Average Monthly Social Security Benefits Payable in January 2003: $ 882 (Before
1.4% COLA) After: $895.
The above was slightly modified from material found at, Quick Fact Archive from the Cato Institute.
Here are some more interesting links.
National Center for Policy Analysis Social Security Reform without Illusion: The Five Percent Solution AGGIE
SOCIAL SECURITY Shortchanges African-Americans USA Today (Society for the Advancement of Education)
USA Today magazine, published in New York by the Society for the Advancement of Education, provides commentary and debate on US domestic issues and events. Topics include politics, ecology, education, business, media, literature, science, and religion.
The Power of Compound Interest The Congressional InstituteAndrew G. Biggs, Ph.D., The Congressional Institute, Inc., August 18, 1999
posted by BigBubba at 10:28 PM
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3 Comments:
Thanks for scoping out the facts surrounding the Social Security issue. The biggest Social Security "shocker" for me wasn't on your list though... that if I were to die tomorrow, my family wouldn't receive ANY benefits UNTIL my non-working wife reached retirement age in 15+ years. That insult after my employer and I having contributed almost $200,000 to the program. Glad I've got "private" insurance to cover THAT contingency.
-FJ
I must point out again that 90% of the post is from the Cato Institute's Project on Social Security Choice. I found one link to be dead so I replaced it. There were several other links that took one to the Social Security Administration's web site. From there it was a big "Good Luck" on finding the specific information. I found the specific location and changed the link. Cato Institute and Big Bubba's humble, minor contribution.
I believe that a private account, for at least part of a retiree's social security, is a brilliant idea. That is a government concept that has proved to be successful. New government hires, in the mid 80s, were put under a new retirement system that guaranteed a modest government retirement combined with social security. To make those retirement years really golden a Thrift Savings Program (TSP) was initiated with a matching contribution formula.
I thank God every day for the TSP. I had to leave government service at age 52 on medical disability. I left the building, barely moving and breathing, with a six figure TSP account. I immediately sent Uncle Sammy almost $10,000 to "buy" my seventeen years in the Army. Has anyone ever figured that one out?
I no longer have any TSP money worth bragging about. Perhaps I wasn't very thrifty. In my defense I ask who, in their right mind, retires having just recently bought two two cars? I had notes on two new cars. My income also nose dived from high five to under mid five. I absolutely could not work so I had to tough it out. Because of my TSP toughing it out almost seemed to be normal.
I am now a preacher of the gospel to young people participating in their 401k/TSP program. You just never know what the future holds. Unfortunately despite all of the talk about "safety net" social security is not much for the lower end of our social scale. Not much compared to the security of even a very modest contribution to a private account.
Good work, Big Bubba!
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