• The average monthly Social Security benefit check for 2020 is $1,503. The maximum benefit check possible at full retirement age is $3,011.
• The 2020 benefit amount is calculated by multiplying the first $960 of average indexed monthly earnings by 90 percent, the remaining earnings up to $5,785 by 32 percent, and earnings over $5,785 by 15 percent.
• The average annual benefit per individuals is $18,024. For married couples $30,372.
• Among retired workers who collect monthly Social Security benefits based on their own work record, men receive $1,627 and women receive $1,297.
• There are now only 2.8 workers per Social Security beneficiary compared to 3.3 in 2007.
• 40.2 percent of Americans ages 60 and up rely solely on Social Security for retirement income.
• Unmarried men – 39.2 percent – and women – 42.3 percent – are more likely to rely on Social Security for their sole source of retirement income. That is compared to couples at 23.8 percent
• Social Security is an important income source for 7 in 10 recent retirees making up an average of 37 percent of their total retirement income on average.
• More than 28 percent of current workers expect to rely on Social Security as their primary source of retirement income.
• Only 55 percent of Millennials are confident Social Security will provide them with meaningful income in retirement.
• 21 percent of married couples and 45 percent of single people receiving Social Security retirement benefits rely on the program for at least 90 percent of their income.
• The income “replacement rate” from Social Security will slip to about 35 percent for a worker retiring at age 65 in the future. This is because the full retirement age will rise from 66 to 67 in the next few years.
• The 2020 Social Security cost-of-living adjustment is 1.6 percent for an average monthly dollar increase of $23.40.
• Because of inflation Social Security beneficiaries have lost 33 percent of buying power since 2000.
• Nearly 68 million people receive a monthly Social Security benefit.
• $137,500 is the maximum amount of earnings subject to the Social Security tax in 2020.
• Social Security is technically designed to pay the same amount of total lifetime benefits regardless of the age at which a beneficiary claims them.
• Benefits increase about 8 percent a year for every year of delaying collecting Social Security up until age 70.
• About 60 percent of retired workers begin receiving benefits before age 65 while only about 10 percent begin benefits between ages 67 and 70.
• Telephone scammers target Social Security beneficiaries. Never give you person information to someone over the phone. Social Security will contact you by mail. If in doubt visit your local Social Security office.
The source of this information is 401kSpecialist.com
Hopefully the 2020 facts and statistics will provide you some valuable information as you contemplate when to retire and when to begin your Social Security Benefit.
Always consult with competent tax, legal and financial professionals before making major lifetime financial decisions.