Social Security Is an Anti-Poverty Program

By Ben Veghte, Income Security Research Associate, and Virginia P. Reno, Vice President for Income Security, National Academy of Social Insurance (NASI)

As the deficit commission considers ways to reform the federal budget, it’s worth taking a moment to look at the sometimes underestimated functions of Social Security. By providing life insurance, disability insurance, and old-age income protection to nearly all Americans, Social Security mitigates some of our society’s most severe poverty risks. It does so with far lower administrative costs than private insurance and with guaranteed benefits that are immune to fluctuations in the stock market. About 99 cents of each dollar of Social Security spending goes to benefits—less than one cent goes to administration. Because it works so well and covers virtually everyone, and because many of us don’t appreciate the program until we need it, we sometimes overlook its success in reducing poverty.
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