What Every Working Family Should Know
About Social Security

Social Security is the retirement plan for America’s workers and their families. Two-thirds of older Americans rely on Social Security for half or more of their income. Nearly one third rely on it for 90 percent of their income. Only about one-third of retirees receive private pensions. Even for those who do, Social Security is vital. Having enough after retirement usually requires a combination of Social Security, a pension and personal savings.

But Social Security isn’t just a retirement plan. It’s a family protection plan that covers all generations with life and disability insurance for 96 percent of America’s workers.

Today, Social Security is a lifeline delivering monthly benefits to more than 44 million people, including 31 million retired workers and their dependents, 6 million disabled workers and their dependents and 7 million survivors of workers who have died.

Social Security is funded by workers’ contributions. For most of its history, Social Security collected just enough in contributions to pay out benefits due then. But in anticipation of retirement of the Baby Boom generation, Social Security began building a surplus. By the end of 1999, Social Security’s trust funds will hold about $864 billion in assets.

Many people are worried that Social Security will “go broke” when the Baby Boomers begin to retire in 2010. In truth though, Social Security can pay 100 percent of the benefits it owes until 2034. And after that, if no changes are made, Social Security could pay 75 percent of promised benefits.