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
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.
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