Social Security

Happy 78th Birthday, Social Security!

This highly successful program pays benefits to 57 million Americans. It’s the single most important source of income for its elderly beneficiaries, contributing on average two-thirds of income for recipients over age 65. For more than one-third of them, Social Security constitutes 90 percent or more of income.

Social Security Keeps 21 Million Americans Out of Poverty: A State-by-State Analysis

Without Social Security, 21.4 million more Americans would be poor, according to the latest available Census data (for 2011). Although most of those whom Social Security keeps out of poverty are elderly, nearly a third are under age 65, including 1.1 million children.

What the 2013 Trustees’ Report Shows About Social Security

Social Security does not face an immediate crisis, the trustees’ report shows, but it does face a funding shortfall two decades from now that the President and Congress should address reasonably soon so the program can fully meet its promises. Prompt action would permit changes that are gradual rather than sudden, and allow people to plan their work, savings, and retirement with greater certainty. | See also: Greenstein Statement on Social Security Trustees' Report

Chained CPI Proposal Would Cut Social Security Retirement Benefits by About 2 Percent, on Average

The President’s new budget proposes to use the chained Consumer Price Index (CPI) for computing cost-of-living adjustments in Social Security and certain other federal benefits, as well as for indexing key parameters of the tax code. The effect of this proposal on Social Security retirement benefits would vary by a person’s age and benefit level and would differ for current and future beneficiaries, but most future beneficiaries would experience a benefit reduction averaging about 2 percent over the course of their retirement. For most current beneficiaries and for low-income beneficiaries, the average reduction would be smaller. | See also: Greenstein Commentary: The Debate Over the Chained CPI

Social Security Disability Insurance is Vital to Workers With Severe Impairments
Program’s Growth Largely Due to Demographic Factors;Financing Should be Addressed as Part of Overall Solvency

Although some critics charge that spending for the program is “out of control,”the bulk of the rise in federal disability rolls stems from demographic factors: the aging of the U.S. population, the growth in women’s employment, and Social Security’s rising retirement age.

Related:

• Testimony: Pending Insolvency of Disability Insurance Expected and Should Be Addressed
• SSI and Children with Disabilities: Just the Facts