Social Security marks its 75th anniversary this weekend. On Aug. 14, 1935, President Franklin Roosevelt signed the Social Security Act into law, and since then the program has had a vital role in reducing poverty. According to analysis by the Center on Budget and Policy Priorities, without Social Security 19.8 million more Americans would be poor.
Almost 90 percent of people aged 65 and older receive some of their family income from Social Security. Without Social Security benefits, 45.2 percent of elderly Americans would have incomes below the poverty line, all else being equal. With Social Security benefits, only 9.7 percent are poor. Some 13.2 million elderly Americans are lifted out of poverty by Social Security.
Social Security reduces elderly poverty dramatically in every state in the nation. Without Social Security, the poverty rate for those aged 65 and over would exceed 40 percent in 42 states. With Social Security, the elderly poverty rate in the large majority of states is less than 10 percent. Social Security lifts 1.1 million elderly people out of poverty in California and Florida, almost 900,000 in Texas, 800,000 in New York, and 461,000 in North Carolina.
Social Security is important for children and their families as well as for the elderly. About 6 million children under age 18 (8 percent of all U.S. children) lived in families that received income from Social Security in 2008, according to Census data. Over 3 million children received their own benefits as dependents of retired, disabled, or deceased workers. Others lived with parents or relatives who received Social Security benefits. In all, 1.1 million children are lifted out of poverty by Social Security.
Records show that 3.2 million children under age 18 qualified for Social Security payments themselves in December 2009. Of these, 1.3 million were the survivor of a deceased worker. Another 1.6 million received payments because their parent had a severe disability. And 301,000 children under 18 received payments because their parent or, in some cases, grandparent was retired.
To read the full report by the Center on Budget and Policy Priorities, click here.
To read the Top Ten facts about Social Security on the 75th anniversary, click here.
