Social Security 101
Social Security is much more than a retirement program. It is a family income protection program that reflects the commitment of the country to the economic security of workers, retirees and their families.
Social Security protects workers and their families during their working lives and through their retirement. It's the primary source of retirement income for most Americans.
Six out of ten (60 percent) of today's beneficiaries derive more than half of their income from Social Security. In most low-income households of retirement age, Social Security represents 80% or more of their retirement income.
In addition to paying benefits to retirees and their spouses, Social Security provides a guaranteed foundation of income for workers who become disabled, and for the spouses and dependent children of wage earners who die or become disabled. In fact, one in three beneficiaries today is not a retired worker.
- An estimated 97% of children under 18 can count on monthly benefits if a working parent dies.
- About 90% of workers and their families have protection in the event of a long-term disability.
- Anyone who qualifies for Social Security benefits receives a monthly check and can count on that check keeping pace with the rising cost of living.
Social Security provides a strong, unshakable financial base that does not depend on a person's investment savvy. It was not designed to compete with the stock market as an investment vehicle. Nor was it designed to provide all the money one needs for retirement.
Because of its lifetime guarantee and its annual cost of living adjustment, Social Security has dramatically improved the economic status of older Americans.
Women and minorities are most likely to depend almost exclusively on Social Security for several reasons. Minorities because their employment opportunities are often more limited and they are more likely to have lower wages and work in jobs without benefits such as a pension. Women, too, are more likely to work in lower wage jobs lacking pensions and often experience time out of the paid workforce (frequently due to family care-giving responsibilities).
