A new study by the Center on Budget and Policy Priorities finds that Social Security contributes heavily–more than any other program–to reducing poverty in the US, particularly for older women and people of color. In 2024, 23.5 million more people in the US are not living in poverty as a result of Social Security. Of those, 17 million are older Americans.
The majority of the xxx people over 65 in the United States get most of their annual income from Social Security. They so depend on Social Security that nearly four in ten of them–16.9 million people or 37.6 percent–would be living in poverty without it. That said, Social Security benefits are still not enough to keep every older adult from poverty. Even with Social Security, more than 10.3 percent of older adults live in poverty.
Other studies that rely on Census survey data support the finding that Social Security is keeping millions of older Americans from living in poverty. These studies suggest that the poverty rate for older adults in 2021 was 6.5 percent. Though the official poverty rate for older adults was 10 percent in 2021.
Women and people of color benefit significantly from Social Security benefits. Because women and people of color tend to receive lower wages than white men, they have fewer assets. Nearly 10 million older women do not live in poverty because they receive Social Security benefits. For older Black and Latinos, Social Security benefits represent a higher percentage of their income in retirement than for older white men. If older Black and Latinos in the US did not receive Social Security benefits, 45.2 percent of Latinos and 49.8 percent of Black older adults would be living in poverty.
Social Security also benefits children. In 2024, Social Security prevented one million children from living in poverty. More than six million children under 18 in the US live in families receiving Social Security benefits. Roughly 2.4 million of these children received benefits because they are dependents of retired, disabled and deceased workers. Others of these children lived with relatives who receive Social Security.
Of note, the poverty rate for older adults varies significantly by state. Social Security benefits play a significant role in keeping the poverty rate down. Without it, 40 percent or more of older adults in 15 states would be living in poverty. Social Security keeps the poverty rate for older adults below 10 percent in more than 30 states. In stark contrast, more than half of older adults in the US not receiving Social Security benefits–about three percent of them–live in poverty.
Here’s more from Just Care:
- Expand Social Security, don’t means test it
- The cap on Social Security contributions must go
- Calls to Social Security are going unanswered
- All Americans should contribute at the same rate to Social Security
- 2025: Planning for health care costs in retirement
