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16. Poverty


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.

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