U.S. public policy typically encourages saving. Our retirement system has undergone a major transformation over the past four decades, shifting workers to an individual savings-based system. Public policy supports saving for college costs, health costs, and emergencies, so it seems odd when a specific group of Americans is denied the ability to save, but that is precisely the situation facing people who receive Supplemental Security Income (SSI) benefits.
Established in 1974 by President Nixon and run by the Social Security Administration, SSI provides financial assistance to individuals who have limited income and resources, including those who are 65 or older, blind, or disabled. Unlike Social Security benefits, SSI is not based on work history. Instead, it is a needs-based program funded by general tax revenues, not Social Security contributions. The goal of SSI is to help eligible people cover basic expenses like food, clothing, and shelter. As of February 2025, approximately 7.4 million individuals were receiving SSI payments, which includes one million children.