Social Security

Basic Facts About Social Security

Social Security is part of almost everyone's life. Social Security protects more than 141 million workers and pays benefits to 43 million people.

You and your family are probably protected by Social Security...and you probably pay taxes that help make the system work. But you may also be unsure about what Social Security does, who it helps, and how much it costs.

This guide gives you some basic facts about Social Security...and tells you how to get more information if you want it.

Social Security Is More Than Retirement

It Provides Survivors Protection Worth Almost $300,000 To An Average Family.

The importance of Social Security survivors benefits is often underestimated. Yet younger Americans face roughly a 1-in- 5 chance of dying before reaching age 65.

Survivors benefits, which are paid to a deceased worker's family, can help with financial problems that sometimes follow a worker's death by providing a continuing cash income.

The value of Social Security survivors benefits for an average wage earner who dies and leaves a spouse and two children is equivalent to a $295,000 life insurance policy. Of course, Social Security benefits are paid monthly and not in a lump-sum payment.

The average monthly payment for a family consisting of a widow(er) with two children is about $1,350 per month. Social Security payments increase based on the annual cost-of-living index-something few private insurance plans offer.