The number of Social Security beneficiaries reached a new high in April, with more than 69.3 million Americans earning monthly payments, according to Social Security Administration (SSA) data.
As more baby boomers reach retirement age, the number of recipients relying on the program is set to increase just as the SSA faces a funding challenge.
Why It Matters
The SSA provides monthly benefits to retired workers as well as widowed spouses, children and Americans with disabilities.
For many, the checks are their primary source of income to cover basic necessities like food, transportation and housing.
What To Know
In April, the number of Americans earning Social Security benefits climbed to 69.37 million, up from 69.16 million in March.
For the last 10 years or so, the number of Social Security recipients has been on an upward trajectory.
In April 2024, 67.7 million people earned Social Security benefits. Four years previous, in 2020, just 64.62 million Americans earned payments, up from 56.75 million in 2012, which is the earliest year the SSA has publicly available data.
Supplemental Security Income (SSI), another type of benefit overseen by the SSA, was not included in these numbers. That would make overall recipient numbers even higher.
Frank Bisignano, former CEO of Fiserv and longtime executive at major financial institutions, was recently confirmed as the new commissioner of the SSA.
Bisignano said he would streamline SSA’s operations using private-sector efficiency. This would include lowering the number of improper payments with artificial intelligence (AI) and tech upgrades.
What People Are Saying
Frank Bisignano said during his confirmation hearing: “At the end of the day, we need to evaluate the ability to pay back and work it out… I’m going to make sure we recover all the money we should recover, but on the other hand, we need to be humans in the process too.”
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: “We have 10,000 people reaching 65 each day, and more people are aging in our population. This trend is due to medical and technological advancements that allow people to live longer, increasing the number of retirees dependent on the Social Security system.”
Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek: “The number of Social Security beneficiaries is reaching a peak as the last of the Baby Boomers turn 62 and are first eligible in 2026, then the full retirement age of 67 in 2031, and finally at age 70 in 2034.”
“Life expectancy plays a big part in the future viability of the fund, and it is a strange calculation. In 1935, life expectancy at birth was under 65, so on average, less than half the population was expected to collect any Social Security. If you made it to 65, your life expectancy was about 16 years.”
What Happens Next?
Due to the higher number of people entering retirement and the smaller younger generation workforce, the SSA is facing a funding shortfall as early as the mid 2030s.
“The system’s funding is structured to cover benefits through 2090, but the surplus, known as the Trust Fund, which enables full payouts, is under significant strain,” Thompson said.
“Without substantial reforms such as means testing, raising the income cap for Social Security taxes, or increasing the retirement age, the system will only be able to pay about 79 percent of scheduled benefits after the Trust Fund is depleted. This potential shortfall represents a major risk to retirees, many of whom rely heavily on these benefits, potentially leading to a retirement crisis if not addressed promptly.”
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