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Old-Age Insurance Benefits, January–June 1956

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Old-Age Insurance Benefits, January–June 1956 and three spent more than $4. BY Table 2.-Percentage distribution of old-age benefits awarded in January- comparison, for general assistance June 1956, by benefit-computation method and sex only two States spent more than $2 [Based on lo-percent sample] per inhabitant for vendor payments. Beneflt-canputation method Totalnumber........-.....-------.----.....---.-------....-.--... Old-Age Insurance Bene- Total percent- -- .________.___._ . .._.____._........-.----- ~1w~100/~==% Ben&t based on earnings after 1936 _______ _._...._.__.__._ .... ..- ... fits, January-June 1956 Benefit based on earnings after 1950.. .. ..__.__.___......-.------- ..... Benefits Awarded Total~rcent......-.......-....-.---.---.-.-......-.----.- .... ..- Beneficiary not eligible for the dropout ._.__._ .... .._._.____._._ .... .._ During the first half of 1956, old- Benefit based on earnings after 1936 .. ___._..........___._.--- .... ..- age benefits were awarded to nearly Benefit based on earnings after 1950 ._.______._._._ -.- ..____._._._. Benelkiary eligible for the dropout ..__ _.____._._._._ . .._ ____._._. 409,000 persons, about 100,000 less Beneflt based on earnings after 1936. .._.________ _._.... ._______. than the number in the corresponding Beneficiarv not eliaible for benefit based on earnings after lQ.Y.L-. Beneficiary eligible for beneflt based on earnings after 195& _ _ ._.. months of 1955. The 1955 period in- Benefit based on earnings after 1950 __.______._._._._._..-.--.-.--.-. 1952 beneAt formula plus 1954 conversion table ______._... -_- ._.._. cluded a large number of awards to 1954 beneUtformula....-..~....~~.....-..-.~~~~~~~~~~.~.~.~.....-. persons affected by the liberalization in the retirement test under the 1954 amendments. (These provisions, awarded old-age benefits in the first the dropout under the alternative which became effective in January half of 1956 were eligible for the qualifying condition. Such cases 1955, changed the earnings test for dropout-that is, up to 5 Years of should occur infrequently after 1956 wage earners from a monthly to an lowest earnings could be excluded in because, for applications filed after annual basis, raised to $1,200 the the calculation of their average October 1956, the beneficiary would amount that beneficiaries can earn in monthly wage (table 2). The drop- lose one or more monthly beneflts a year before any benefits are with- out provision may be applied if the from failure to file a timely applica- held, and lowered from 75 to 72 the worker has 6 quarters of coverage tion. age at which beneficiaries can receive after June 1953, or if he first becomes In some instances, though workers benefits regardless of the amount of eligible-that is, fully insured and of were eligible for a benefit computa- their earnings.) Self-employed farm- retirement age-for old-age benefits tion based on earnings after 1950, ers and other workers qualifying for after August 1954. The remaining 6 their benefits were higher when the beneilts solely as the result of work percent of the beneficiaries had been computation was based on earnings newly covered under the 1954 amend- eligible for benefits since August 1954 after 1936. Among workers eligible ments could be eligible for benefits or earlier but did not have sufficient for a benefit computation based on as early as the second quarter of work after June 1953 to qualify for earnings after 1950 with the dropout, 1956. Although workers in this group are represented to only a small extent Table %.-Number, percentage distribution, and average monthly amount of in the awards of the first half of 1956, old-age benejits awarded in January-June 1956, by starting date used in benefit computation, age, and sex their number will be more significant in awards of the second half of the [Based partly on lo-percent sample] year and the early part of 1957. Total I Male Female Method of benefit computation.- I - I About 94 percent of the beneficiaries Average Num- Average Percent monthly her Percent monthly amount amount _ -- Table l.-Average old-age benefits awarded in January-June 1956, by Total ____.___._._ I 408,671 I 100 1 $69.99 1 282,024 -. 100 875.62 126,647 100 S5i. 46 benefit-computation method and 65-69.. __._________... 301.186 ii 71.31 201,747 sex 70-74 _________________ 81,081 70.79 61,223 75-79 . .._....____..__ 20,359 : 54.w3 14,662 [Based on 1Oqercent sample;sverase benetlts shown 6Oandover __.. -- . .._ 6,045 47.56 4,392 to the nearest dollar] ---- =: Based on earnings after 1950_....___. 314,850 106 76.90 223,725 100 82.33 91,125 100 62.95 Benefitk~-c;~;tation Total Male Female -. 6.549 ..____________._. 224,018 2 79.07 156.273 --- 70-74 _._____________a_ 70,035 75.74 52,984 2 85.3980.22 67,74517,051 1974 64.4761.81 75-79 . .._ -_-___ 15,QSQ 2” 59.25 11,138 f 62.9653.36 4,8511.478 .52 46.4950.68 Total.--.-.- _._._ ____ $70 $76 s57 6Oandover ___...._.. 4,808 51.25 3.330 --- -~~ =: Benefkiory not eligible Based on earnings for dropout .___._.___. 40 41 37 after 1936_..._..__ 93,821 100 46.84 ‘58,299 100 48.94 35,522 100 43.39 -. ~~---~ Benefkiary eligible for 78 52.07 31,644 89 44.67 dropout ___...._._._._ 72 78 59 14 39.78 “E ; 38.26 Ben&t based on earn- 6 34.63 36.89 ings after 1936__._.__ 49 52 45 2 33.14 175 (9 33.80 Benefit based on earn- ingsaftcrlQ%-e-e. 78 83 64 - 1 Age on birthday in 1956. 2 Less than 0.5 percent. 18 Saaizl Secufitv the beneflt was higher for about ‘7 Table &-Number, percentage distribution, and average monthly amount of percent when earnings after 1,936 old-age benefits awarded in January-June 1956 to beneficiaries eligible for the dropout, 1 by starting date used in benefit computation, age, and sex were used (for men, 6 percent; for women, 8 percent). Data for 1955 [Based on lo-percent sample] showed about the same proportions. Future trends in the number of Total Male Female I I I awards under the different benefit formulas are not clear cut, but awards Average wnthlv based on earnings after 1936 will probably be made for many years to come. There are several reasons: Total __._._.___._ 1 382,565 1 100 1 $72.06 1 264,673 / 100 / $77.87 1 117,892 / 100 $59.00 (1) Persons who do not have 6 58.88 62.38 quarters of coverage after 1950 are 51.Q8 eligible only for a computation based 48.24 on earnings after 1936. Among per- 63.90 sons eligible for a dropout computa- 64.95 tion to whom an old-age benefit com- 63.w 52.73 puted with a 1936 starting date was 48.63 awarded in the first half of 1956, less - than one-fourth were eligible for a 44.81 1950 starting-date computation. TYP- 44.97 ical of the group permanently insured 41.61 41.40 but not having 6 quarters of coverage 30. w after 1950 are disabled persons and 1 Brnrficiaries clipible for the exclusion of up to 5 * Age on birthday in 1956. women who left the labor force when years of lowest earnings in the calculation of the aver- 3 Less than 0.5 pwwnt. middle-aged or younger. Some of age monthly wage. these individuals will not reach re- tirement age for many years. Hence, Table &-Number and percentage distribution of old-age benefits awarded in awards will be made for many years January-June 1956, by starting date used in benefit computation, amount to individuals qualified only for a of monthly benefit, and sex benefit computation based on earn- II&cd partly on lo-percent samplcl ings after 1936. (2) Benefits based on earnings Total Male I Female after 1936 are computed by means of Amount of monthly benefit - the 1939 benefit formula and then in- Number Percent Number Percent NUIIlbW Percent ~~ creased by use of a conversion table, but benefits based on earnings after Total..-................-... 408,671 100 282.024 100 126,647 -. 100 $30.00 . .._..._.._._._._... 31,263 11 26,941 21 1950 are computed either by means 30.10-39.90 ____._.__....._ .._._. 12.593 4 12.060 10 of the 1952 formula, increased by use 40.0049.Qa ._._..........._._c.-. 13,177 t! 11,468 50.00-59.90 .._........._____..-.. 15.763 12,535 1: of a conversion table, or by means W.OO+Q,9.90.._....__..____._._... 31,639 11 25.031 20 70.00-79.90.. _........__._ .._... 31. Q69 14 of the 1954 formula. When the aver- SO.(Kt89.90. __ _._....._... ..__.. 32,591 :2 18.2349.962 age monthly wage is the same whether 90.0049.90 _______. -..__.. 54,582 f F 6.820 i loo.W-108.50. ._..........___---. 58.44i 3,596 3 based on earnings after 1936 or after ___~ _. Average benefi.. ._.... -.- .___.. $69.99 _ . 675.62 _ $57.46 1950, the 1936 starting-date com- -zz.Y =: putation produces higher benefit Based on earnings after 1950 __I 314,850 I 100 223,725 1OO 91,125 -. 100 amounts. If earnings are low, the $30.00 .._._.____.___.._.. .._._. 24,657 8 11,210 5 13,447 15 30.10-39.90.
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