Congressman Etheridge on Social Security

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Saving Social Security

Back to information about Social Security Privatization

Why Social Security Is Important

A benefit people have earned, that they can count on. Retirees earned their benefits because they paid into Social Security over the course of their working years. The monthly benefit is predictable and steady; receives an annual cost-of-living increase; and the amount does not fluctuate with the stock market. Benefits are paid as long as the worker (and his or her spouse) lives. Social Security has never failed to pay promised benefits.

Single largest source of retirement income. Social Security is the single largest source of retirement income in the U.S. For almost two-thirds of seniors, Social Security provides the majority of their income. And 4 in 10 widows rely on Social Security to provide 90 percent or more of their income.

Promotes independence. Social Security and Medicare help millions of seniors to live independent lives. Currently, nearly 12 million seniors - almost half of all retirees - would be living in poverty were it not for Social Security.

Not just retirement. About 30 percent of Social Security beneficiaries (15 million people) receive disability or survivor benefits. For a 27-year-old worker with a spouse and two children, Social Security provides the equivalent of a $403,000 life insurance policy or a $353,000 disability insurance policy.

Family insurance. Social Security protects elderly widows, young parents who have lost a spouse, children who have lost a parent to death or disability, even adults who were so severely disabled before reaching adulthood that they’ve never been able to work.

Widespread. About 48 million people receive monthly benefits from Social Security, or 1 out of every 4 households. Over 90 percent of seniors receive Social Security benefits. In contrast, less than half of seniors receive a pension from their employer.

Benefits are modest. A worker with average earnings has 42 percent of those earnings replaced by Social Security in retirement. The average benefit for a retiree is only $955 per month, or about $11,500 per year. There is little fat to cut in Social Security.