Understanding Participation in SSI by Kathleen McGarry and Robert Schoeni Comments by

Understanding
Participation in SSI
by Kathleen McGarry and Robert Schoeni
Comments by
Barbara Butrica
Urban Institute
August 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.
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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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