Social Security has been a part of retirement life ever since it was established in 1935. Here are nine interesting facts about social security that will help you understand the benefits. Some facts may even surprise you!

  1. The Social Security trust fund is huge. It was $2.8 trillion at the end of 2022.1
  2. Most workers are eligible for Social Security benefits, but not all. For example, until 1984, federal government employees were part of the Civil Service Retirement System and were not covered by Social Security.2
  3. You don’t have to work long to be eligible. If you were born in 1929 or later, you need to work for 10 or more years to be eligible for benefits.3
  4. Benefits are based on an individual’s average earnings during a lifetime of work under the Social Security system. The calculation is based on the 35 highest years of earnings. If an individual has years of low or no earnings, Social Security may count those years to bring the total years to 35.4 Whether you are receiving benefits or not, it is smart to set up your online “My Social Security” account now. See your earnings and payments records, estimated benefits, or update your address and direct deposit information. Establishing an account early can also prevent someone from establishing a fraudulent account and attempting to receive your hard-earned money.
  5. There haven’t always been cost-of-living adjustments (COLA) in Social Security benefits. Before 1975, increasing benefits required an act of Congress; now, increases happen automatically, based on the Consumer Price Index. There was a COLA increase of 3.2% for 2024, but there was an increase of 8.7% in 2023.5
  6. Social Security is a major source of retirement income for 67% of current retirees.6
  7. Social Security benefits are subject to federal income taxes – but it wasn’t always that way. In 1983, Amendments to the Social Security Act made benefits taxable, starting with the 1984 tax year.7
  8. Social Security recipients received a single lump-sum payment from 1937 until 1940. One-time payments were considered “payback” to those people who contributed to the program. Social Security administrators believed these people would not participate long enough to be vested for monthly benefits.8
  9. In January 1937, Earnest Ackerman became the first person in the U.S. to receive a Social Security benefit – a lump sum of 17 cents.9

Interested in learning more about Social Security Benefits and getting your questions answered? Request a copy of our free Guide to Social Security to be mailed to you. It is full of information and charts to help answer your social security questions. =

If you still have questions or would prefer to have a conversation about your questions, the Emerj360 team is here to help. Give us a call at 1-833-637-5360 or schedule a meeting with us.

Sources

  1. SSA.gov, 2023
  2. Investopedia.com, September 18, 2023
  3. SSA.gov, 2023
  4. SSA.gov, 2023
  5. SSA.gov, 2023
  6. EBRI.org, 2023
  7. SSA.gov, 2023
  8. SSA.gov, 2023
Written By  Emerj360
For 401(k) Plan Participants, Consistency is Key
Brett Sebion, Financial Coach  – October 23, 2024
Recent research1 from the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI) found that 401(k) plan account balances increased significantly between 2016 and 2020 for participants who made regular and consistent contributions to their plan accounts. The study reinforces just how helpful it is for plan participants to contribute consistently to their plan […]
Keep Reading
Protect Your Finances From Fraud
Heather Jordan  – October 03, 2024
As you navigate the digital landscape, it is important to be aware of the evolving fraud risks. Scammers embrace AI and other technology because it enables them to analyze large amounts of data quickly, identify potential targets more efficiently, and personalize their scams to appear genuine, increasing the chances of success. By equipping yourself with […]
Keep Reading
How Retirement Spending Changes With Time
Heather Jordan  – September 30, 2024
New retirees sometimes worry that they are spending too much, too soon. Should they scale back? Are they at risk of outliving their money? This concern may be legitimate. Some households “live it up” and spend more than they anticipate as retirement starts to unfold. In 10 or 20 years, though, they may not spend […]
Keep Reading

What are you waiting for?

Everything we do boils down to this: by doing what is best for you, we do what’s best for our company. Helping you build financial security and plan for retirement so you can look forward enjoying life.
Open Account right-arrow-dark Sign Up Now right-arrow-dark