Social Security has helped financially millions of Americans during retirement. In 2021, an average of 65 million Americans per month receive Social Security benefit, totaling over one trillion dollars in benefits paid during the year.

Essentially, Social Security is the major source of income for most elderly Americans age 65 and over.

• Nearly nine out of ten people age 65 and older receive Social Security benefits.
• The estimated average Social Security retirement benefit in 2021 is $1,543
• Social Security benefits represent about 33% of the income of the elderly.
• Among elderly Social Security beneficiaries, 50% of married couples and 70% of unmarried persons receive 50% or more of their income from Social Security.
• Among elderly Social Security beneficiaries, 21% of married couples and about 45% of unmarried persons rely on Social Security for 90% or more of their income.

The maximum Social Security benefit an individual who files in 2021 can receive per month is $2,324 for someone who files at age 62; $3,148 for someone who files at full retirement age (currently 66 and 2 months); and $3,895 for someone who files at age 70. 

Here are four actions that you can take to maximize your payments:

• Work at least 35 years,
• Choose your retirement age carefully,
• Claim spousal payments, and
• Minimize federal and state income taxes.

Retirement planning should include Social Security benefits in the equation, so it’s important to understand the purpose of Social Security and how it works.

You’ll need to decide when to start taking Social Security benefits and coordinate that income with withdrawals from your various tax-advantaged retirement accounts.

https://twitter.com/TDAmeritrade/status/1417122059210137605

An estimated 180 million workers were covered under Social Security in 2020.

• 48% of the workforce in private industry has no private pension coverage.
• Two-thirds (68%) of workers are saving for retirement.
• Having an employer-sponsored retirement savings plan is a key factor in whether Americans save for retirement.
• Only 17% of those without access to an employer-sponsored plan said they have any retirement savings.

Social Security Facts

• In 1940, the life expectancy of a 65-year-old was almost 14 years; today it is just over 20 years, according to Social Security Administration.
• By 2035, the number of Americans 65 and older will increase from approximately 56 million today to over 78 million.
• There are currently 2.8 workers for each Social Security beneficiary. By 2035, there will be 2.3 covered workers for each beneficiary

Reference:

1. https://tickertape.tdameritrade.com/retirement/how-does-social-security-work-17191
2. https://www.aarp.org/retirement/social-security/questions-answers/benefits/
3. https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf
4. https://www.ssa.gov/pubs/EN-05-10085.pdf