Interactions between Social Security reform and the Supplemental Security Income program for the aged

Interactions between Social Security reform and the Supplemental Security Income program for the aged

Interactions between Social Security reform and the Supplemental Security Income program for the aged

Davies

Paul S.

Davies, Paul S.

Author

Author

Favreault

Melissa M.

Favreault, Melissa M.

Author

Author

text

working paper

Chestnut Hill, Mass. Center for Retirement Research at Boston College20042004monographic

Chestnut Hill, Mass.

Chestnut Hill, Mass.

Center for Retirement Research at Boston College

2004

2004

monographic

Englisheng

English

eng

electronicapplication/pdfborn digital

electronic

application/pdf

born digital

Most analyses of Social Security reforms ignore interactions with the Supplemental Security Income (SSI) program. We explicitly consider such interactions using a microsimulation model. The basic reform we examine reduces Social Security benefits by the percentage required to approach 75-year solvency. We then add options for attenuating the effects on low-income beneficiaries, including a minimum Social Security benefit and liberalization of three SSI program parameters. Focusing on the elderly in 2022, we compare the simulated reforms with respect to benefit receipt patterns, poverty rates, and winners and losers. Social Security beneficiaries turn to the SSI program for income support in response to Social Security benefit reductions, but substantial SSI reforms are necessary if the SSI program is to play a more effective income security role. Among the limited set of reform options we consider, Social Security minimum benefit plans would be more effective in reducing poverty among low-income beneficiaries.

Paul S. Davies and Melissa M. Favreault.

CRR WP2004-2

CRR WP2004-2

CRR WP

2004-2

http://crr.bc.edu/images/stories/Working_Papers/wp_2004-02.pdf

MChBEnglisheng

MChB

Englisheng

English

eng