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USA Today
6 days ago
- Business
- USA Today
Average Social Security check to break $2,000 for the first time ever in June 2025
Sean Williams The Motley Fool When the Social Security Act was signed into law in 1935, its purpose was to provide a financial foundation for America's aging workforce. Nine decades later, this mission is still being fulfilled, with the added bonus of also providing protections for workers with disabilities and survivors of deceased workers. Based on an analysis from the Center on Budget and Policy Priorities, Social Security was responsible for pulling 22 million people out of poverty in 2023, which is more than any other social program. Nearly three-quarters of these 22 million people were aged 65 and above. For most retired-worker beneficiaries, their monthly payout is more than just income — it's a necessity. According to 23 years of annual surveys by Gallup, Social Security income helps between eight and nine out of every 10 retirees cover at least some portion of their expenses. Next week, when the calendar officially flips to June, Social Security retired-worker benefits will do something that's never been seen in the program's 90-year history. Who's ready for Social Security history to be made? Every month, the Social Security Administration (SSA) publishes a "Monthly Statistical Snapshot" that intricately breaks down where benefits paid in the previous month ended up. For example, the April statistical snapshot shows that $128.736 billion in traditional Social Security benefits were doled out to 69.378 million people. Retired workers account for nearly 76% of all beneficiaries (52.587 million), with disabled workers (7.156 million) and survivor beneficiaries (5.841 million) comprising much of the remainder. If you're wondering why these three numbers don't add up to 69.378 million, it's because spouses, children and other direct relatives may qualify for benefits on behalf of a retired, disabled or deceased worker. In addition to breaking out how many beneficiaries received a payment, Social Security's monthly snapshot provides the average monthly benefit for each category. Spanning all beneficiaries, the average payout was $1,855.57 in April. But it's the average monthly benefit for retired workers that's just a week away from making history. Last month, retired-worker beneficiaries took home an average check of $1,999.97. However, this average monthly payout isn't static. Every month, new beneficiaries are entering the pool to receive their first monthly Social Security check, and some beneficiaries pass away. Additionally, higher nominal wages paid to working Americans over time, coupled with the impact of near-annual cost-of-living adjustments (COLAs), directly affect the average monthly take-home pay for retired-worker beneficiaries. Due to these factors, the average retired-worker benefit has always risen on a month-to-month basis, based on more than a decade of published SSA statistical snapshots. Sometimes, these increases are pronounced, such as the jump from an average payout of $1,980.86 for retired workers in February 2025 to $1,999.97 just two months later. This $19.11 increase spanning just two months potentially signals a big uptick in workers filing for benefits. More often, the average retired-worker payout grows by $1 to $2 on a month-to-month basis, not including the one month each year when COLAs are implemented. With the expectation that this trend remains intact, the average Social Security retired-worker benefit in May, based on the soon-to-be-reported June statistical snapshot, will surpass $2,000 for the first time in history. It's a psychologically important figure for a program that serves as a financial foundation for many aging workers. A Social Security dollar simply isn't what it once was But uncorking the champagne isn't advisable just because Social Security is making history. While nominal monthly payouts for retirees continue to climb, they've been doing so at a considerably slower rate than the inflationary pressures retirees have been contending with for a quarter of a century. Beginning in 1975, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) became Social Security's inflationary measure for doling out annual cost-of-living adjustments. With over 200 spending categories, all of which have their own respective weightings, this index can be whittled down to a single figure at month's end, which makes for easy year-over-year comparisons to see whether collective prices are rising (inflation) or falling (deflation). Though everything sounds kosher on paper, the CPI-W has done retirees no favors. As its full name implies, the CPI-W is focused on the spending habits of "urban wage earners and clerical workers." These are typically working-age people who aren't currently receiving a Social Security benefit. More importantly, working-age folks and retirees tend to spend their money very differently. Whereas the former spends more on education, apparel and transportation, seniors spend a higher percentage of their monthly budget on shelter and medical care services than the typical working American. Even though an overwhelming majority of Social Security beneficiaries are aged 62 and above, the inflationary index used to calculate annual COLAs isn't properly weighting shelter and medical care services to their needs. The result? According to a May 2023 analysis from nonpartisan senior advocacy group The Senior Citizens League (TSCL), the purchasing power of a Social Security dollar dropped by 36% from January 2000 to February 2023. A more recent analysis from TSCL points to a 20% loss of buying power for Social Security income between 2010 and July 2024. Even though Social Security retired-worker benefits are breaking above psychological barriers, retirees are more often than not witnessing the buying power of their Social Security income dwindle over time — and that's nothing to celebrate. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. The $23,760 Social Security bonus most retirees completely overlook Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets"could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. JoinStock Advisorto learn more about these strategies. View the "Social Security secrets" »
Yahoo
02-04-2025
- Business
- Yahoo
Fact Check: DOGE didn't find that the number of Social Security recipients exceeded the number of US citizens
Claim: The Department of Governmental Efficiency (DOGE) discovered there were 394 million Social Security recipients in the U.S., while there were only 344 million U.S. citizens. Rating: A rumor circulating online since mid-February 2025 claimed the Department of Governmental Efficiency (DOGE) uncovered 394 million people receiving Social Security benefits, despite the U.S. having only 344 million citizens. One Facebook post (archived), with over 314,000 reactions, read: "BREAKING - Elon Musk and DOGE have discovered that there are 394 million Social Security recipients in the U.S. Despite the country having only 334 million citizens, a discrepancy of more than 60 million." The claim spread across multiple social media platforms, including Facebook, LinkedIn, Threads, Instagram, and X. However, the claim that DOGE found 394 million Social Security recipients is false. As of this writing, approximately 69 million people receive Social Security benefits each month. The 394 million figure cited in the rumor likely refers to the number of records in the Social Security database — not the number of active recipients. Moreover, posts spreading the rumor claimed the U.S. had "only 334 million citizens." As of this writing, the U.S. Census Bureau estimated the total population at around 342 million, but this number includes all residents, both citizens and noncitizens. The exact number of U.S. citizens is unclear, especially since several million are estimated to be living abroad. The rumor likely originated from a post (archived) that Elon Musk, tech billionaire and public face of DOGE, shared on Feb. 17, 2025, reading: "According to the Social Security database, these are the numbers of people in each age bucket with the death field set to FALSE! Maybe Twilight is real and there are a lot of vampires collecting Social Security 🤣🤣" Musk shared a table that appeared to show the number of individuals in the Social Security database by age group, all marked as "alive" — with the "death field" set to "FALSE." While social media posts cited a total of 394 million, the actual sum of the figures in Musk's table was even higher: 398,416,213. This figure includes individuals who have Social Security numbers and are listed as alive in the database, not active recipients of Social Security benefits. In a follow-up post, Musk wrote, "Yes, there are FAR more 'eligible' social security numbers than there are citizens in the USA." BBC Verify journalist Shayan Sardarizadeh shared a screenshot showing that Musk had reposted a tweet with the in-question rumor. However, as of this writing, the original post was no longer available. According to a fact sheet from the Social Security Administration (SSA), "in 2025, an average of almost 69 million Americans per month will receive a Social Security benefit, totaling about $1.6 trillion in benefits paid during the year." The SSA's Monthly Statistical Snapshot for February 2025, released in March, reported 68.7 million beneficiaries that month (see image below). ( Therefore, the actual number of Social Security recipients was around 69 million, not 394 million. Posts spreading the rumor claimed the U.S. had "only 334 million citizens." As of this writing, according to the United States Census Bureau, the U.S. population was 341,554,233. However, this number shows not only citizens but "people whose usual residence is in the 50 states and the District of Columbia," meaning potentially noncitizens. Additionally, "these projections do not include members of the Armed Forces overseas, their dependents, or other U.S. citizens residing outside the United States." The exact number of U.S. citizens is difficult to determine. While the U.S. Census does not directly report the number of noncitizens, it does note that, as of July 2024, approximately 13.9% of the population was foreign-born. However, it remains unclear how many of those individuals had acquired U.S. citizenship. Moreover, several million of U.S. citizens are estimated to be living abroad. In October 2024, the Association of Americans Resident Overseas (AARO) estimated that 5.5 million Americans live abroad, noting that other estimates range from 9 to 3 million. "There will always be a level of uncertainty about the true number of overseas U.S. citizens because actual numbers are either unavailable or unreliable," the organization highlighted, adding that the U.S. government "does not keep track of where U.S. citizens might be living, working, or studying overseas." Additionally, recipients of Social Security benefits are not limited to U.S. citizens. Some noncitizens who are lawfully residing in the United States may also be eligible for Social Security benefits, but they must meet specific requirements, such as having a Social Security number and meeting certain work-history requirements. Since the new administration took office, we've investigated numerous claims regarding DOGE and Social Security. For instance, we debunked a false rumor claiming DOGE discovered that a Louisiana man was using 34 different names, addresses, and Social Security numbers to collect more than $1 million annually in Social Security benefits. We have also investigated a claim by U.S. President Donald Trump that the "government databases list 4.7 million Social Security members from people aged 100 to 109." As we've explained, the SSA does more than just send out payments — it is also in charge of registering unique Social Security numbers and their related information for nearly every legal resident in the U.S. The government and businesses then use these numbers to identify individuals and to track their financial records. For more articles on the topic, check out our collection of claims we've analyzed about Social Security.
