When Social Security first began paying monthly retirement benefits in 1940, what was the average monthly benefit?
1. About $25
2. About $50
3. About $75
4. About $100
Answer:
1. When Social Security began paying monthly retirement benefits in 1940, the average monthly benefit was around $22.60, equal to the purchasing power of roughly $540 today. Even then, Social Security was designed as a foundation for retirement income—not as a replacement for wages, a reminder of the importance of personal savings and participation in employer-sponsored retirement plans for financial security in later life.
