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Social Security and SSI as safety nets for the elderly poor
Martha N Ozawa1, Hong-Sik Yoon
1George Warren Brown School of Social Work, Washington University, Campus Box 1196, One Brookings Drive, St. Louis, MO 63130, USA. awazo@gwbmail.wustl.edu
Journal of Aging & Social Policy
|February 1, 2003
Summary
The Social Security and Supplemental Security Income (SSI) programs significantly improve income for the elderly poor, acting as a crucial safety net. However, Social Security benefits may increase racial income disparities among this group.
Area of Science:
- Social Policy
- Economics
- Gerontology
Background:
- Partial privatization of Social Security is proposed, raising concerns about retirement income security.
- A robust safety net is critical for future American retirees facing income uncertainty.
Purpose of the Study:
- To empirically investigate the effectiveness of Social Security and Supplemental Security Income (SSI) as a safety net for the elderly poor.
- To assess the combined and separate impacts of these programs on income status and distribution.
Main Methods:
- Empirical analysis of income data for elderly populations.
- Examination of posttransfer and pretransfer income statuses.
- Assessment of income distribution and disparity.
Main Results:
- Social Security significantly boosts income for both pretransfer and posttransfer elderly poor.
- Social Security demonstrably equalizes income distribution among the elderly poor.
- Supplemental Security Income (SSI) enhances the safety net, particularly for the posttransfer poor.
- Social Security benefits were found to widen racial income disparities among the elderly poor.
Conclusions:
- Social Security and SSI are vital components of the elderly poor's financial security.
- Policy considerations are needed to address the racial income disparities exacerbated by Social Security.
- The findings have implications for the future design of social safety nets in the context of potential Social Security privatization.