Social Security Benefits Sent to Nearly 200,000 New People
A sign is seen outside a US Social Security Administration building, November 5, 2020, in Burbank, California. The number of people who received total social security increased in April, according to data from the administration.
The number of Americans who collected benefits from the Social Security Administration rose to almost 72.23 million in April compared to 72.03 million in March, according to the latest data from the agency.
The figures suggest there were about 195,000 new recipients of Social Security, Supplemental Security Income or a combination of both. In April, 64.8 million people received only Social Security benefits, up from 64.6 million the previous month.
It's unclear what was behind the monthly increase. Newsweek has contacted the SSA for comment via email.
The Context
About 70 million Americans receive retirement benefits from the Social Security Administration. According to the agency, an individual who retires in 2024 at 70 years old may qualify for a monthly benefit of $4,873. For those who retire at 67 years old, the full retirement age, the maximum amount would be $3,822.
In April, the number of benefit recipients who were 65 years old or older totaled more than 55 million people, a slight uptick from March's 54.9 million. The amount disbursed for Social Security alone in April was about $120 million, an average of $1,777 per month, the data showed. In March, the amount was about $119.8 million, with an average monthly benefit of $1,775.
Views
Part of the reason behind an increase in new recipients of Social Security benefits may be that more people retired.
"The answer to your question may be due to people simply choosing to retire and start Social Security right away, or they just decided not to wait any longer," Burt Williamson, a retirement specialist at PlanPrep, told
Newsweek.
This move could be informed by fears that the agency's redefining of public assistance may "dilute" what retirees can get in benefits, or perhaps there was an urgent need for cash that precipitated early retirement.
Another key reason is concern over the future of Social Security itself, Williamson said.
"Fear that the trust fund will run out of money in 2033, causing them to receive less after that occurs," he said.
Social Security's longevity is a recurring concern for Americans, with experts suggesting that without reforms, the trust fund that disburses the benefits may be depleted in about a decade. Steve Goss, the Social Security Administration's chief actuary, suggested that should the fund be drained by 2033, the agency could be forced to pay about 80 percent of benefits.
In a Morning Consult/Bloomberg poll, Americans suggested they would welcome a cut in benefits for retirees in high income brackets as a way to extend the life of the fund. The poll found that 57 percent of swing-state voters approved of such a move, even though it was not immediately clear what would constitute high income in that equation.
Taxing billionaires to fund Social Security was also popular among respondents, with about 77 percent of those surveyed in favor of the move.
But Williamson suggested that Americans may not be aware of how the benefits system works.
"A lot of people don't understand that even if there are reductions in the future, the amount they could receive during a normal life expectancy should still be about the same, whether they start early or late," he told Newsweek.
What's Next
Recent research suggests that the number of Americans reaching the age of 65, the traditional retirement age, will be higher in 2024 compared to recent history, a trend that experts say will continue over the next few years. The Wall Street Journal said that more than 4 million Americans would hit the milestone age this year.
While the increase in older Americans could mean more retirees relying on retirement savings such as Social Security benefits, almost 20 percent of this age group is still working.
"Nearly double the share of those who were working 35 years ago," the Pew Research Center reported.
These Americans may still be working because they are healthier or have retirement savings plans that don't have a set retirement age. Another reason may be policy shifts in when older Americans can access their retirement funds.
Pew's analysis said, "Changes to the Social Security system, which raised the age that workers receive their full retirement benefits from 65 to 67, likely have encouraged older adults to delay retirement and continue working, according to labor economists."
Update 05/13/24 2:08 p.m. ET: This article was updated with comment from Burt Williamson.
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