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Old-Age Insurance Benefit Awards, January–June 1955

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Table 2.-Estimated number of or- Old-Age Insurance Benefit tive in January 1955, changed the phans under age 18, by type and by earnings test for wage earners from a age, July 1, 1955 1 Award& January-June monthly to an annual basis, raised to [In thousands] 1955 $1,200 the amount that beneficiaries During the first half of 1955, old- can earn in a year before any benefits T age benefits were awarded to nearly are withheld, and lowered from 75 to 511,000 persons, a record number. 72 the age at which beneficiaries can The previous high, established in the receive benefits regardless of the Mother Both first 6 months of 1951, was due pri- amount of their earnings. Thus, many only P;rdt” dead marily to the liberalized insured- persons between age 72 and age 75 status provisions of the 1950 amend- and others under age ‘72 with moder- ments. The sharp increase in Janu- ate earnings, who had delayed filing Total Sal 60 ary-June 1955 was due mainly to the for benefits because they were work- liberalization in the retirement test ing in covered employment, filed and o-4-.... 130 130 5-9-.... 6w 3:: 410 under the 1954 amendments. These began receiving monthly benefits. 1c-14.e. 15-17--. 900 13.1 E later provisions, which became effec- Method of benefit computation.- 1,020 I 7.b: I 1 Estimated in accordance with procedures dovel- aped by the Division of the Actuary. See the Bul- Table 1.-Percentage distribution of old-age benefits awarded in January- letin, March 1955, pp. 17-19. June 1955. by bene$t-computation method and sex 2 Less than 5,003. [Based on l&percent sample] formed a relatively small proportion Benefit-computation method 1 Total ) Male / Female -only one-sixth-of the 3.5 million widows under age 65. Fewer than 1 Totalnumber....~~......-~~~~.~-~~~~..-~~~~~~~.~..~.---....-.-... I 510,796 I 361,787 in 25 were under age 35. More than Totalperccn- _______-__.-- _____--...-.--- . .._ --..-_- _._. -__- _._. 1 loo I 100 I 100 half were aged 55-64. Benefit bawd on earnings after 1936_..__________________________ -_.. Arnefitbased on ewnines after 1950.. __._____ _____-_-.. ..-. I Orphans also are much more heav- ._ ___-Ad Totalpereent-...-.--.-...------.--.-.----.-.----......-.......... 100 100 100 ily concentrated at the older than at ____ --___ the younger ages, as shown in table Beneficiary not eligible for the dropout -- -.. 16 15 18 Renefitbasedonearningsafter1936. -.- -..- I i 2. Moreover, the younger the child is, Benofitbasedoncarnin~ssfter1950~..- ._.. -.- . .._ -_--.-.- _____ : i i the more frequent the insurance Hvnrficiary eligible for the dropout -.. 84 85 benefits, as shown by the following Bcncfit bnscd on earnings after 1936 -.. 15 13 E Reneliciary not eligible for hen&t based on earninps aftrr 1950.-.. 10 8 15 figures on the proportion of paternal Beneficiary eligible for benefit based on earnings after 19jo-.-..-.- Hrnefit based on carninps after 195C..-...- _._. _._...____...._ ~._. 2 7: 6: orphans with old-age and survivors 1952 benNit formula plus 1954 wnversion table _______.._.._.._. -.. 7 insurance benefits in current-pay- 1954 bcnrfit fornrnla . ..___.___.___ --.-._-.- . .._. --.- 635 702 54 ment status at the end of December 1954: Table 2.-Number, percentage distribution, and average monthly amount n&w Peresnt of old-age benefits awarded in January-June 1955, by starting date used in benejit computation, age, and sex Under 5 -~~---------------__----------- 64 [Hued pwtly on lo-percent sample] 5-9 -__.~~~~--~~~~~~-~~~__-_____________ 50 10-14 --- --_------~-------------------- 57 Total Female 15-17 ---~~~-_-----_--_-_-_------------- 41 -7 Age 1 Aver- Arer- AVCP The higher beneficiary rates for Num- Pcr- we SuIn- rer- SW Prr- am bcr cent monthly hrr cent month]: cent monthly amount amount amount younger children mean that benefits I i are most likely to go to those for --/-I-I- Total ._......._.. 510,796 1M $70.91 I 361,i87 I 100 1 $76.73 149,009 100 j $56.80 whom income support is most urgent, ____ when the mother should be in the GSA9 . .._._._...._ 334,941 fit? 103,191 i3 55.74 i(t74.....-...-....--. 130,322 26 29, s81 20 60.62 home to care for a young child in- i5-'iY.......-......... 40,3o!l 8 9,362 G 58.40 stead of being away at work. This 80 and owr- 5,224 1 1,575 1 47.62 difference, however-at least below 77.40 290,208 loo 82.79 104,642 100 / 62.45 the age when children may start __~ __- 237,564 i7.44 163,545 58 33.48 69.019 66 62.69 work-is likely to disappear in the 116,684 78.78 90,651 31 83.30 26,033 25 63.06 future because it reflects the fact 36,238 75.30 28,033 10 is.58 8,205 8 60.6!l 4,364 55.sil 2,979 1 58.82 1,385 1 49.60 that the older the orphan the more !ikely it is that his father had died 115,946 48.81 71,579 100 52.12 44,367 100 / 43.46 -__ at a time when the coverage of the IiS-(ig................. 97.37i 49.38 58,205 81 53.34 39,172 88I 43.49 old-age and survivors insurance pro- TO-i4. _..~_.___._._... 13,638 4i.93 9.7w 14 49.44 3,848 9 1 44.09 7-h-79 .._. ..-. 4.071 41.52 2,914 4 41. 26 1,157 3 42.20 gram was more restricted. x0 and owr- . .._____. 8tN 32. 99 6i0 1 32.94 190 (9 ; 33.17 1 Sge on birthday in 1955. * Less thnn 0.5 percent. Bulletin, February 1956 11 About 84 percent of the beneficiaries Table 4.-Number. percentage distribution, and average monthly amount of awarded old-age benefits in the flrst old-age benejits awarded in January-June 1955 to beneficiaries eligible for half of 1955 were eligible for the the dropout, 1 by starting date used in benefit computation, age, and sex dropout-that is, up to 5 years of IBased on IO-percent sample] lowest earnings could be excluded in Total Male Female the calculation of their average T-- - monthly wage (table 1). A worker Am 2 Aver- Aver- Aver- NUIXl- Per- age Num- Per- age NUEO- Per- we is eligible for the dropout if he has ber ckmt month13 ber cent monthly ber cent monthly 6 quarters of coverage after June nInount amount amount 1953, or if he first becomes eligible _ -__ -___- _____ Total-. .._._.. -_. 100 1 $75.10 306,255 100 $81.02 122,287 100 $60.29 (that is, fully insured and aged 65 or .- over) for old-age benefits after Au- 65-69 __.. .___ ____.. 286,901 E 81.1272.61 195,238 64 79.26 91,663 75 58.43 70-74 ._..__..._ -_- _._. 107,643 84,011 27 85.15 23,032 19 66.43 gust 1954. Of the awards made in 75-79 ..___ _ __ _ _ 31,656 7 78.68 24,988 8 82.26 6,667 5 65.27 80 and over ________.. 2,943 1 60.91 2,018 1 63.54 925 1 55.16 1954 under the 1954amendments, only - - -- 24 percent were eligible for the drop- Based on earnings after 19.Y.-.. 106 I 79.83 100 1 84.98 1 QO,752 out-a percentage that is understand- .- FMQ.. ._ _. _. 215,047 153,363 68 64.45 ably low since (1) awards in this 7*74 . ..-- ________. 103,123 ii 81.7479.23 81,255 24 66.70 period included a large proportion 75-79..--.-..---...-.. 30,789 9 79.26 24,458 7 65.72 80 and over ________.. 2,791 1 62.12 1,922 1 56.25 __~ made to beneficiaries first eligible for - 1= y- - Based on earnings beneflts before September 1954, and after 1936._.... 100 53.45 45,257 100 46.71 (2) the fourth quarter of 1954 marked .- __- 65+9 ___.___. --- _____. 71,854 94 52.79 41,875 93 29,979 95 46.05 the first time beneficiaries could qual- 7&74. _. - -. _ __ __ __. _-. 3,92Il 5 64.99 2,756 6 1, 164 4 61.22 75-79..-.....----.---. 866 1 5s. 04 530 1 336 1 56.81 ify for the dropout on the basis of 6 80 and over-. ..______ 152 (9 38.75 96 (9 56 (9 38.30 quarters of coverage after June 1953. - It was recognized that the percent- * Beneflcia?ries eligible for the exclusion of up to 5 f .4ge on birthday in 1955. yews of lowest earnings in the calculation of the 3 Less than 0.5 percent. age eligible for the dropout would in- average monthly wage. crease rapidly, leaving ineligible only a small group-those who have been eligible for benefits since August 1954 Table 5.-Number and percentage distribution of old-age benefits awarded or earlier and who do not have suffi- in January-June 1955. by starting date used in benefit computation, amount cient work after June 1953. The flg- of monthly benefit, and sex ure for the first half of 1955 also [Based pertly on IO-percent sample1 showed the effect of the liberalized Total Male I Female retirement test; virtually all workers Amount of T - monthly beuetit flling because of that provision qual- Number Percent Number Percent Number Percent ify for the dropout.
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