U.T. MBA professor Sandy Leeds shares 5 interesting facts on Social Security:
1. Approximately one quarter of married couples and just under half of single retirees rely on Social Security for 90% or more of their income.
2. The average monthly benefit is $1,235. This is less than $15K per year (which is pretty low for people who don’t have much more).
3. In 1960, there were 4.9 workers paying for every retiree. Today, there are 2.8 workers for every beneficiary. By 2035, there will only be 1.9 workers for each beneficiary.
4. For those turning 65 this year, women can expect to live 20 more years and men can expect to live 17.8 more years.
5. We are starting to see the first generation of middle-income retirees who will take less out of Social Security than they put in. The Urban Institute says that a married couple that retired last year and earned average wages would have paid $598K and they will take out approximately $556K. Higher income retirees have been in this negative situation since the 1990s. Lower income people still put less in than they take out.