Bush's Social Security Plan: A Closer Look at Benefits for Survivors and the Disabled

President Bush's social security plan has been a subject of debate, with claims that individual investment accounts would provide significant benefits to widows and the disabled. However, a closer examination of the facts suggests that the existing social security system offers more generous benefits to those who are eligible. The plan's impact on survivors and the disabled remains unclear, with the president failing to address these components of the social security safety net.

Key Takeaways:

• The current social security system covers 69% of total payments to retired workers and their dependents, 17% to disabled workers and their dependents, and 14% to survivors of workers who died before retirement age.
• Social Security survivor benefits are generally more generous than what private investment accounts would provide, especially for families with children.
• The spouses of workers who die before retiring are eligible for survivor benefits, even if they are under 60, if they have children younger than 16.
• Children of deceased workers are entitled to monthly social security checks until they are 18 (or 19, if they are still in high school), with benefits equivalent to a life insurance policy with a face value of about $400,000 and disability benefits with a face value of about $350,000.
• Disabled workers are entitled to the same level of benefits they would have had if they had worked until full retirement age, with dependents also eligible for benefits depending on the circumstances.
• The average annual benefit for a widowed mother with two or more children was about $23,000 in 2002, while the average annual benefit for a disabled worker was about $10,000 and the average benefit for the child of someone who was disabled was slightly more than $3,000.

Statistics:

• 69% of total social security payments go to retired workers and their dependents (%)
• 17% of total social security payments go to disabled workers and their dependents (%)
• 14% of total social security payments go to survivors of workers who died before retirement age (%)
• Average annual benefit for a widowed mother with two or more children: $23,000
• Average annual benefit for a disabled worker: $10,000
• Average benefit for the child of someone who was disabled: slightly more than $3,000
• Workers who die at 40 after working for 20 years would likely have less than $40,000 in their individual investment accounts

Sources:

• "President Bush's Social Security Plan", The New York Times, [February 27, 2002]
• "Survivor Benefits", Social Security Administration Web site, [cited in The New York Times, February 27, 2002]
• "The National Academy of Social Insurance", report, January 2002
• "Trent Duffy, White House spokesman", interview with The New York Times, [February 27, 2002]