Understanding Participation in SSI

by Kathleen McGarry and Robert Schoeni

Comments byBarbara Butrica Urban InstituteAugust 7, 2014

1 in 9 Americans ages 65 and older lives in poverty

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The share of older adults receiving food, housing, or heating benefits matches poverty rates fairly closely

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Yet, the share receiving SSI benefits is well below poverty rates

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Why is SSI Participation So Low?

• Do elderly not participate because of a perceived stigma?

• Do they not participate because they have other means?

• This paper contributes to our understanding of SSI participation among older adults.

• Different from other studies, this paper focuses on the role of family.

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Authors’ Findings

• Eligible nonparticipants are somewhat better off than participants—physically and economically.

• Among SSI eligibles, those with higher income children and those receiving transfers from children are less likely to participate in SSI.

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Suggestions for Future Research

• Use qualitative measures of well-being• Difficulty paying bills• Enough money for food• Skip meals (if not enough food)• Retirement satisfaction

• Control for consumption• Could focus on basic needs—housing, health

care, food, and clothing

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Suggestions for Future Research

• Consider the timing of eligibility versus the timing of income sources, for example:• Respondents might delay claiming Social Security

because they are waiting for their spouse• Or some of their income sources may be

intermittent

• Reexamine eligibility criteria• The finding that 11% of eligible non-participants

receive transfers from children compared with only 6% of participants may indicate that eligibility is mismeasured.

• Non-participants might not actually be eligible.8

Implications for Retirement Security

• Poverty rates of older Americans could be lower if SSI-eligibles were to participate.

• The results could inform policymakers as to how better to reach low-income elderly.

• The results could also guide federal and state governments about how SSI participation might change in response to changes in Social Security.

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Over time, Social Security benefits have increased relative to poverty—not true for SSI

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SSI prevalence has declined dramatically for adults ages 65 and older—not true for younger people

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Policy Recommendations

• Improve education/outreach about SSI benefits.• The Strengthen Social Security Coalition suggests notifying

Social Security beneficiaries of their potential eligibility for SSI, along with SSI rules on asset holdings.

• Reform and strengthen SSI program.• Increase the asset limit to reflect changes in the cost of living. • Increase the maximum benefit to the poverty threshold.

• Consider Social Security reforms that protect low-income adults. • Maintain the relatively high replacement rates for lower earners.• Minimum Social Security benefits.

• Control rising health care costs.

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