Happy 81st Birthday to Social Security

Over the past weekend Social Security turned 81 and is still going strong and making a difference in peoples lives. According to a report from the Joint Economic Committee of the U.S. Congress, Social Security helpssa logos more than 60 million individuals or almost one-third of the U.S. population. The average benefit in 2016 is $1,350 per month. While it may not seem like a whole lot of money, it is the majority of income for 45% of all seniors. For 22% of seniors it is 90% of their income. Without Social Security income the poverty rate among women age 65 and older would increase from 12% to over 45% according to a 2015 report from the Center on Budget and Policy Priorities. And it will become more important in years to come.  One of the reasons Social Security is becoming more important is the decline in pensions. According to the Employee Benefit Research Institute and Bureau of Labor Statistics, roughly 80% of employees at medium and large firms had pensions in 1985. However less than 30% do today.  So happy birthday Social Security and hopefully you will have many, many more.

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