If you think Social Security is just for retirees, consider its importance to survivors and the families of those who perished on Sept. 11, 2001. In the two years since the attack, $67 million has been paid out to those affected by the tragedy.
More than 2,000 families applied for Social Security benefits after the terrorist attacks. Today, the Social Security Administration pays more than $3 million in monthly benefits to more than 3,000 surviving spouses and children, and nearly 500 people disabled by the attacks. One-time payments were made to 1,800 members of victims' families.
That's a drop in the bucket compared to the $470 billion in benefits that the SSA will pay out to nearly 47 million Americans this year.
The bulk of the SSA's business -- 70% -- goes to retirees, who on average receive a monthly benefit of $898.20. About 15% of the agency's payouts go to disabled workers and their families. As of May 2003, the average benefit for a disabled worker was $837.70, according to statistics. Another 15% of benefits goes to widows, widowers, and their families, with an average check amount of $850.80.
If you or the breadwinner in your family become disabled -- or worse -- before retirement, Social Security can be a lifesaver. But you might not want to let up on your own retirement savings. Consider these two facts: By 2030, there will be twice as many older Americans as today -- from 35 million today to 70 million. And while there are currently 3.4 workers contributing money for each Social Security beneficiary, by 2030 there will be just 2.1 workers for each beneficiary.
Yipes.
Consider the cost of not saving for retirement, and then figure out how much extra you need to set aside to insure that life after the working world is as sweet as you want it to be. The Social Security website lets you calculate your exact benefit. And if you need a second opinion, TMF Money Advisor operators are standing by -- literally -- to help you plan the retirement of your dreams.
