African American Social Security

Studies show that African Americans receive diffidently more in social security benefits for each dollar they pay in payroll taxes than the whites do. They earn 73% as much than as white individuals, especially on average, but because of social security liberal benefit structure, their average retirement is about 85% as much as whites. In addition, studies show that African Americans benefit excessively from social security’s disability and survivor’s benefits, since they are more likely than the other workers to develop disability or die before their retirement. Example, let’s say while 15% of all U.S children are African Americans, 23% of the children receiving social security survivor’s benefits are also added in the group. In terms of
the progressive benefit structure of social security to African American, studies show that social security use a way of progressive formula to calculate benefits for retirees, survivor’s and the disabled workers, example, take those workers that retired in 2003. In this case, the individuals that retired that year (2003), had some average earnings over their careers of no more than $606 a month and receive social security benefits equal to 90% of their average monthly pre-retirement earnings. In order words, for every high income individual earners, social security replace 25% of their average pre-retirement earners.
Therefore, African Americans significantly has a lower average lifetime earnings than the non-minorities who subsequently receive social security benefits that replace a larger share of their pre-retirement than the non-minorities do.
However, to further explain this in a statistical form, we say thus, African American worker’s earnings equal to 73% of white worker’s earnings, on average, and the average monthly social security retirement benefit for African American equals to 85% of the average benefits for white retirees. In addition, there are other features of social security benefit formula that protect the African Americans. For example, the social security benefit formula is focused on the maximum 35yrs of earnings and it castoffs or discards other years. This, however, helps the African Americans a great lot, since they have doubled the unemployment rates as well as experience longer average spells of employments compared to the white individuals. At the other hand, African American men tend to consequently have a higher number of years with no earning compared to the whites, on average.
In order words, by overlooking some years of no or low earnings in calculating benefits (that’s since 35 is the highest years of earning counted), the social security systems, therefore, benefit the African American more. However, these progressive features by social security, are somewhat offset, reason because African Americans have a lower life experience compared to the white individuals.
And so, that is why studies show that the progressive features of social security tend to benefit the African American more than it overweighs the life-expectancy effect.
In the aspect of the disability and survivor’s benefits, social security is a social insurance program, that protects the American workers or employees, including their spouses and children against the loss of income, especially if a worker is unable to engage in a regular, full-time work because of disability, death or old age.
Although, more of today’s discussions, tend to focus more on social security retirement benefits, social security disability and survivor’s which are more important and very substantial in the U.S. In addition, social security has estimated that disability benefits are worth $350,000 to a representative household or family. However, if a worker earns with an average wage and has a spouse and two young kids becomes permanently disabled, the disability benefits that social security will pay to that family over the years will total around
$350,000.
Also, Studies show, that American men in their 20’s tend to face a 3-10 chance of being disabled before reaching their full retirement age. And so, that is while social security disability insurance is very much important to all the U.S workers. However, in terms of African American men, study show that the occurrence of disability is on higher rate. And so, in statistical reflection, this shows that African American tend to constitute about 11.5% of all workers who are averagely covered by social security, but make up 17.6% of social disability beneficiaries. Also, African Americans has a disproportionate high chance of death before they reach their retirement age. Whereas, two of every 10 white men in their 20’s die before approaching their retirement age. But over four to ten (4-10) African American men in their 20’s will meet this fate or destiny.
Thus, social security survivor’s benefits tend to go excessively to the African Americans, whereas, 15% of all the U.S children are African American, and 23% of the children end up receiving the survivor benefits. However, the survivor’s benefits tend to be very excess or substantial, and that is the reason that social security actuaries estimated that if a worker that earns an average wage dies and leaves behind a spouse and very two young children, social security will provide the family with survivors benefit worth of $403,000. In order words, the survivor benefit that social security pays to such household or family over the years are equivalent of the family’s receiving a $403,000 of inheritance.
However, in addition to more facts about the African American population with regards to social security. It is very good to know social security comprehensive benefits are very important to the African American, especially when it comes from cradle to death. Social security provides great income support to black families who face different challenges of death, disability, or retirement. This is because, a significant number of African Americans come from a very poor background, including poverty, poor health, high unemployment, low skills as well as low education, making their lives much different from the white individuals. Therefore, these differences are shown on how the African Americans use their social security. Below are diagrams to show you that African Americans use survivor disability benefits compared to whites.