16.1 If 50% of the elderly today would be in poverty without Social
Security, what percentage of Social Security recipients are currently
below the poverty line? As a follow up, what is considered to be
the "poverty line".
As you stated, data tabulated by the Social Security Administration
show that as of 1996, about 52 percent of all aged units age 65 or
older (an aged unit would be married couples living together where
at least one of whom is 65 or older, and single persons 65 or over)
would have had incomes below the poverty line were it not for Social
Security. Counting Social Security, only 11 percent of aged units
aged 65 or older fall below the poverty line. The official poverty
measure used by the Bureau of the Census consists of a set of
thresholds that vary by family size and composition. There are 48
thresholds for families composed of one to nine or more persons
cross-classified by the presence and number of fancily members
under age 18. One and two-person families are further differentiated
by the age of the family householder (under age 65 or 65 and older).
In 1996, for a one-person household where the individual is age 65
or older, the poverty threshold was $7,525. For a two-person
household where the householder is 65 or older, the threshold was
$9,491.
16.2 How many non-elderly live in poverty right now?
In 1996, 33.1 million people under age 65 were living in poverty.
This is the most recent year for which figures are available from
the Current Population Survey published by the Bureau of the Census.
16.3 How do we define poverty and how has it changed over the years?.
The federal government began officially measuring poverty in the
1960's. The first estimates of poverty were based on surveys that
determined by calculating the amount of money needed to purchase
a "nutritionally adequate" diet as determined by the Department
of Agriculture. This amount of money was multiplied by 3 to determine
the poverty level or threshold. The poverty level is thus based on
the income needed to purchase this minimal diet (representing
one-third of income), plus two-thirds more for all other life
necessities. The poverty level is adjusted annually by the increase
in the Consumer Price Index (CPI).
16.4 What percent of those living in poverty are covered by Social
Security?
Almost all workers are covered by Social Security, including those
whose earnings are so low that they are poor. Among the elderly,
about 11 percent were poor in 1996. Nearly 8 in 10 of them received
Social Security. |