Social Security's Effect on Child Poverty (CRS Report for Congress)
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| Release Date |
Revised Jan. 23, 2015 |
| Report Number |
RL33289 |
| Report Type |
Report |
| Authors |
Thomas Gabe, Domestic Social Policy Division |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
Social Security plays an important role in reducing poverty, not only among the aged but among children as well. Children may be eligible for Social Security benefits when a parent who is a covered worker dies, becomes disabled, or retires. In addition to receiving Social Security in their own right, children may economically benefit from Social Security by living with other family members receiving benefits.
Based on a Congressional Research Service (CRS) analysis of U.S. Census Bureau Survey of Income and Program Participation (SIPP) data, in April 2013, an estimated 8.5 million children lived in families in which one or more family members received Social Securityâ11.6% of all children. Of this number, an estimated 5.1 million were either child beneficiaries in their own right, or lived with a parent or guardian who reported receiving Social Security. The remaining 3.4 million children lived in families in which Social Security was received only by extended family members (e.g, grandparents, aunts, uncles, nieces or nephews) or other family members (adult siblings). For the former group, Social Security's effect on child poverty is more directly related to Social Security policy, whereas for the latter group, Social Security's effect on child poverty is more directly related to children's incidental family living arrangements.
Children living in families who received Social Security were about equally as likely to be poor (24.4%) in April 2013 as children living in families who didn't (23.3%). Children estimated to have received Social Security benefits on their own behalf and/or to live with a parent or guardian who received Social Security were more likely to be poor (27.2%) than children who incidently were living in families in which Social Security is received only by extended family members (e.g., grandparent, aunt, uncle) or adult sibling (21.3%).
Social Security benefits lifted an estimated 1.952 million children above the official poverty line in April 2013. Among children in families that received Social Security, an estimated 47.8% (4.062 million) would have been considered poor based on family income other than Social Security. The addition of Social Security to family income reduces the incidence of poverty among these children to 24.8% (2.110 million).
In April 2013, it's estimated that over two-fifths of Social Security dollars paid to families with children helped children who otherwise would be counted as poor. Social Security benefits paid on behalf of children and/or their parents or guardians amounted to nearly an estimated $3.847 billion in April 2013, or $46.167 billion on an annualized basis. Of this amount, nearly half (49.2%), $22.072 billion on an annualized basis, went to families who would have been considered poor based on their pre-transfer income (i.e., excluding Social Security), about two and one-half times the estimated $8.738 billion in combined federal and state cash welfare spending under the Temporary Assistance for Needy Families (TANF) program in FY2013, and five times the federal (only) share of $4.485 billion.
