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 benefits in their own right, children may economically benefit from Social Security by living with other family members who receive benefits. The estimates presented in this report are based on a CRS analysis of U.S. Census Bureau Survey of Income and Program Participation (SIPP) data in April 2013. CRS analysis of SIPP data for April 2013 indicates that among an estimated 73.0 million children under age 18, an estimated 8.5 million (11.6%) lived in families in which one or more family members received Social Security—over two and one-half times the number of children estimated to receive Social Security benefits based on the administrative data discussed above from four months earlier (3.3 million in December 2012). Children living in families who received Social Security were about equally as likely to be poor in April 2013 as children living in families who didn't—24.8% compared to 23.3% (the third and second bars, respectively). Figure 3 shows, for example, that 47.8% of children living in families that received Social Security would have been considered poor based on their families' incomes from sources other than Social Security. Figure 4 focuses on just the 5.1 million children who are classified as either child beneficiaries and/or children whose parent(s) or guardian(s) received Social Security, whereas Figure 5 shows the other 3.4 million children who are in families in which Social Security is received only by extended family members other than a parent or guardian. Thus, over two-fifths of Social Security dollars paid to families with children goes to children who would otherwise be counted as poor. Among families with child beneficiaries, about $3.847 billion in Social Security benefits were reported in April 2013 (about $46.167 billion on an annualized basis). Of this amount, nearly half (49.2% , $1.892 billion, or $22.702 billion on an annualized basis), went to families that had total incomes, excluding Social Security , below the poverty line, which is more than five times the estimated $4.485 billion in federal cash welfare spending under the Temporary Assistance for Needy Families (TANF) program in FY2013. An additional 1.893 million children lived with a parent or guardian who reported receiving Social Security on the SIPP in April 2013, but who did not indicate that benefits were received on behalf of a child. These 5.068 million children are differentiated from the remaining 3.430 million children who live in families in which Social Security was received only by extended family (e.g, grandparents, aunts, uncles, nieces or nephews) or other family members (adult sibling). 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 incidental, being more directly related to children's incidental family living arrangements.
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 Security—11.6% 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.