The US Social Security system is best known for providing income to the nation’s elderly population based on the amount of money they earned during their working years.
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As more Baby Boomers start collecting Social Security for more years than the system anticipated—and, simultaneously, birth rates trend down—the Social Security system is feeling the squeeze. When fewer workers pay into Social Security, there's less money overall for retirees to collect. Learn more about what's next for Social Security in this video.
That amounted to nearly 90% of people ages 65 and older. The federal government spent $1.5T on Social Security in fiscal year 2024 (nearly a quarter of the total federal budget). This article details how these figures contribute to the perception that Social Security is “running out.”
Many of these, such as German Chancellor Otto von Bismarck's 1889 retirement system, emerged decades before America adopted them. This article dives into the modern history of economic security and the key legislation that created Social Security.
To calculate your Social Security benefit, the government uses information such as your birthday, current earnings, future retirement date, and more. Calculate an estimation for your future Social Security monthly benefit here.
Most US workers have 6.2% of their gross paycheck taken out for Social Security. The government requires employers to match that 6.2% as well, for a total of 12.4%. This video dives into the specifics of how Social Security functions from a financial perspective.
A worker who has earned at or above the Social Security taxable maximum for at least 35 years and delays claiming until 70 can receive up to $5,181 in monthly benefits. Delaying claiming Social Security until 70 (rather than 62, the earliest age one can receive benefits) results in a higher monthly benefit.
The Social Security trust funds are invested solely in US Treasury bonds. Any Social Security tax revenue surplus has historically been invested in these bonds, which are non-marketable securities available only to trust funds. The interest on these investments also contributes to program income.
Social security is the US government’s largest expense. You can see other government expenses in a visual breakdown of what one US tax dollar actually pays for. Total spending amounts were converted to cents on the dollar and percentages.
The Social Security Administration is responsible for more than just retirement benefits. Outside of the more well-known use case of retirement benefits, the SSA is also responsible for disability, family, and survivor benefits, supplemental security income, and more.
When the Social Security Act was passed in 1935, this poster was distributed across the US as part of a publicity campaign to help spread the news about how Social Security benefits for retirees worked.
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