The federal government spent $1.35 trillion on Social Security in fiscal year 2023. This accounted for 22% of the total federal budget.
What are Social Security benefits?
The Social Security Administration (SSA) provides financial support for people of retirement age (eligibility begins at age 62), people with disabilities, and survivors of family losses including spouses and children.
Of the $1.35 trillion in 2023 Social Security spending:
- $1.15 trillion (85%) went to retirement benefits
- $150.9 billion (11%) went to disability benefits
- $50.9 billion (4%) covered other benefits
How many people receive Social Security benefits?
The SSA projects that nearly 68 million people will receive benefits monthly in 2024.
In December 2023, that total was 67.1 million, including:
- 50.1 million retired workers and their 2.6 million dependents
- 7.4 million disabled workers and their 1.1 million dependents
- 5.8 million survivors
That month, nearly nine in ten people ages 65 and older were enrolled.
How much money do Social Security beneficiaries receive?
The SSA distributed $97.8 billion to retirees and dependents in December 2023, for an average monthly benefit of $1,905. It distributed another $11.9 billion to disability recipients and their dependents, for an average of $1,531. Survivors enrolled in the program were granted $8.8 billion, an average of $1,501.
How is Social Security funded?
The Old-Age and Survivors Insurance and Disability Insurance trust funds, which were worth a combined $2.8 trillion at the end of 2023, fund Social Security.
US workers pay into the trust funds through payroll taxes and employers match these contributions. Self-employed people are taxed at twice the rate. The SSA estimates that 183 million workers contributed $1.2 trillion to the trust funds in 2023. The funds also generated $51 billion from income taxes on benefits and $67 billion on interest.
In 2023, the trust funds that support Social Security ran a deficit, depleting the funds by $41 billion.
Is Social Security sustainable?
The aging population poses a challenge for Social Security, a system designed for — among other purposes — the nation’s workers to support its retirees. The SSA expects the population number of Americans 65 and older to grow 29% from about 58 million in 2022 to about 75 million in 2035.
In May 2024, the SSA projected that the trust funds supporting Social Security could be depleted by 2035 barring any intervention[1].
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[1] This projection considers the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) trust funds together, Taken alone, the OASI funds would run out in 2033, while the DI funds are projected to last through the 75-year projection period.
