Quick Fact Archive

1. Social Security will begin running a deficit by 2017.

Source: 2005 Social Security Board of Trustees Report.

2. A medium income worker born after 1965 can expect a rate-of-return of less than 2% on his or her Social Security taxes.

Source: Actuarial Note 2004.5, Social Security Administration Office of the Chief Actuary, Table 3.

3. The Social Security payroll tax rate has grown from just 2 percent in 1949 to 12.4 percent today.

Source: Social Security Administration

4. Social Security faces an unfunded liability of more than $12.8 trillion.

Source: 2005 Social Security Board of Trustees Report, Section D. This includes the $11.1 trillion estimated in the Trustees Report plus the $1.7 trillion in outstanding trust fund liabilities.

5. "Saving" Social Security without individual accounts could require a 50% increase in Social Security taxes or a 27% cut in benefits.

Source: 2005 Social Security Board of Trustees Report, Section D.

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)

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: 2005 Social Security Board of Trustees Report, Table IV.B2.

10. 48 million Americans receive Social Security benefits, including 33 million retirees, 7 million survivors, and 8 million disabled workers.

Source: 2005 Social Security Board of Trustees Report.

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. Nearly two-thirds of those under 30 years old don't think Social Security will be able to pay them any benefit when they stop working. Fifty-seven percent of people 30 to 49 years old agree.

Source: USA Today poll, January 2005.

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.

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

18. The average monthly retirement benefit from April 2004–April 2005 was $895. That amounts to an annual benefit of $10,740.

Source: Social Security Monthly Statistics, April 2005, Table 1.