Fast Facts About Social Security

2009

Cost-of-Living Adjustment (COLA) for 2009: 5.8 percent

Number of People Paying Into Social Security: 164 million

Percentage of American Workers Covered by Social Security: 94%

Number of People Receiving Social Security:

• Total OASDI Beneficiaries: 49.6 million

• Retirees and their families: 34.8 million

• Survivors of deceased workers: 6.5 million

• Disabled workers and their families: 9.0 million

Estimated Average Monthly Benefit

• Retired worker: $1,153

• Retired couple: $1,876

• Disabled worker: $1,064

• Disabled worker, Spouse and One or More Children: $1,793

• Aged widow or widower: $1,112

• Widow mother with two children: $2,399

Maximum Social Security Benefit: $2,323/mo.
(Worker Retiring at Full Retirement Age)

Retirement Earnings Test Exempt Amounts:
Under full retirement age

NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.

The year an individual reaches full retirement age

NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit.

Social Security and Medicare Tax Rate

• Tax rate paid by employee: 7.65% (6.2% – OASDI, 1.45% - HI)

• Tax rate paid by employer: 7.65% (6.2% – OASDI, 1.45% - HI)

• Total tax rate paid by both: 15.3%

• Total tax rate paid by self-employed: 15.3% (12.4% – OASDI, 2.9% - HI)

NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings.

Maximum Taxable Earnings Base

• OASDI: $106,800

• HI: No Limit

Federal Income Taxes on Benefits

Single:

• Under $25,000 income—tax free

• Between $25,000-$34,000 – 50% added to Adjusted Gross Income (AGI)

• Over $34,000 – 85% added to AGI

Married:

• Under $32,000 income – tax free

• $32,000 to $44,000 – 50% added to AGI

• Over $44,000 – 85% added to AGI

(Note: Effective tax rate depends on seniors' overall tax bracket)

Full Retirement Age Schedule -- by Year of Birth: