How Much Does Social Security Alleviate Poverty Under Different Yardsticks?

Alicia H. Munnell, Boston College, Jan E. Mutchler, UMass Boston, and Laura D. Quinby, Boston College

SSA has an interest in understanding the contribution of Social Security income to meeting individuals’ minimum needs under different yardsticks, as well as the characteristics of those considered poor. The three yardsticks include the Official Poverty Measure (OPM), which determines eligibility for many government programs, and the Supplemental Poverty Measure (SPM), which is widely cited by researchers and the media. In addition, the Elder Index, produced by the Gerontology Institute at UMass Boston, defines the income required to meet basic needs. These measures use different frameworks and do not always agree. Moreover, the official statistics use the Current Population Survey (CPS), which underestimates retirement income, particularly for White households.