Social Security is the most significant source of income for Americans age 65 and older, and its importance has continued to grow over time, according to a recent Social Security Administration (SSA) report. Social Security made up 38% of the total income of people age 65 and older in 2009—up from 30% in 1962—and is the largest of any type of retirement income. According to U.S. News and World Report, “only a fortunate minority” of Americans have significant sources of retirement income other than Social Security. Social Security made up half or more of the retirement income of 66% of Americans age 65 and older in 2009, up from 64% in 2008. And more than a third of retirees (35%) receive 90% or more of their income as a monthly payment from SSA. While Social Security makes up a large share of the typical retiree's income, the amount they are paid is actually fairly small. The average monthly payout to retired workers was $1,176 in 2010. For more statistics and a link to the report itself, go to http://bit.ly/qzOouz.
[Excerpted from the Friday Alert from the Alliance for Retired Americans.]
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