Social Security

As we celebrate International Women’s Day, let us recall the contributions to our nation’s vibrant social insurance infrastructure by those women who are no longer with us, but whose legacies remain strong.

Among these often unsung heroines are:

Tomorrow's announcement by the Social Security Administration about the cost-of-living adjustment (COLA) for Social Security benefits, effective January 2017, is likely to be met with questioning and concerns by many current beneficiaries, particularly in an election year and after no COLA was received in 2016. (That marked only the third year without a COLA in four decades.)

Social Security’s annual COLA is intended to protect the purchasing power of benefits against erosion by price inflation. It is important to many beneficiaries that benefits keep up with the cost of living, because other sources of income typically decline with age. As individuals grow older, their pensions are eroded by inflation, employment options end, spouses cope with widowhood, and savings are depleted - and they rely even more on Social Security.

In the United States, poverty rates for seniors increase at older ages.  The rates are higher for persons age 75 and older than for persons age 65 to 74.   Poverty rates increase at older ages because relatively more people fall into poverty as they age than exit poverty due to death. Persons who live longer may fall into poverty because of various life events -- their spouse dies, they have higher medical or long-term care expenses than expected, or their investment returns are worse than projected. As Americans live longer, they face an increased risk of outliving their savings.

Did you know that this Thanksgiving, there are more than 25 million reasons to give thanks for social insurance? According to Census Bureau data released this fall, more than 45 million people in the U.S., or 14.5% of the nation, lived in poverty in 2013.[1] The good news? Three vitally important social insurance programs – Social Security, unemployment insurance (UI), and workers’ compensation – and a related program, Supplemental Security Income (SSI), kept the poverty rate from being much higher. Together, these four programs kept more than 25 million people out of poverty.

In a blog post on the National Academy of Social Insurance’s new public opinion study, the Committee for a Responsible Federal Budget (CFRB) asks, “Do Americans really favor a revenue-only approach to Social Security reform?”