- Social Security is by far the largest source of income for Americans age 65 and over. At the end of 2010, about 54 million Americans were receiving nearly $702 billion in Social Security benefits. For 35% of these people, Social Security is 90% or more of their income. For 66%, it is more than 50% of their income.
- In addition to retirement benefits, Social Security also provides important survivors and disability insurance protection. Retired workers and their dependents account for 69% of the 54 million Social Security beneficiaries. Disabled workers and their dependents are 19% and Survivors are 12%.
- Understanding that Social Security is not intended to be the only source of income when earnings are lost due to retirement, disability or death is critical. Other sources of income are needed and include asset income (the second largest source), private pensions, government pensions, and earnings. For asset income, the percentage of people receiving this type of income has basically not changed since 1962.
- Medicare is the primary health insurance for nearly 47 million people age 65 and over and many disabled people. A basic understanding of this complex program and how health care legislation has affected it are essential for Medicare beneficiaries, their families, and people planning for retirement.
