Business and Finance

For older Americans, Social Security is the primary source of income. It is funded through payroll taxes and is based on an average of earnings and inflation. Inflation is taken into account to ensure benefits remain at the same level for as long as possible. So the main question is, “How much will I receive?”

Social Security provides the majority of income for older adults.

As a significant source of income for older Americans, Social Security is a vitally important program. Over one in four elderly Americans rely on Social Security as most of their income, and 65% of retired persons depend on it for over half of their income. In addition, more than half of married couples and one-third of single recipients depend on Social Security for over 90% of their income. Meanwhile, only about one-third of unmarried older people rely on Social Security for more than half of their income.

While Social Security is critical to the economy, it is not perfect. While it does help to reduce income disparities, there is a need to improve the system’s targeting. For example, the program’s redistribution of income has historically been uneven based on employment history, putting low-income families at … Read more