Quantifying the Economic Impact of Social Security Benefit Spending
Quantifying the Economic Impact of Social Security Benefit Spending
Social Security benefits play a powerful role in supporting the U.S. economy, generating $2.6 trillion in total economic output and supporting more than 12 million American jobs in 2023 alone. Quantifying the Economic Impact of Social Security Benefit Spending examines the national and state-level economic impact of Social Security benefits paid to retired workers, surviving spouses and children, and Americans with disabilities.
The analysis shows that $1.38 trillion in benefits paid to more than 67 million beneficiaries supported $804.6 billion in labor income, $1.6 trillion in value added (GDP), and $363 billion in tax revenues for federal, state, and local governments.
The report also models what could happen if Social Security benefits were cut due to the program’s projected trust fund shortfall. A hypothetical 19 percent reduction in benefits would shrink the program’s economic impact by more than 16 percent, reducing GDP by hundreds of billions of dollars.
To complement the national analysis, NIRS also developed a series of state fact sheets highlighting the economic impact of Social Security in each state, including the number of jobs supported, total output generated, and tax revenues contributed. These fact sheets illustrate how critical Social Security is to sustaining local economies nationwide.
View your state’s fact sheet to learn about the economic impact of Social Security in your state
“Every dollar of Social Security benefits spent in the U.S. economy supports $2 of economic activity.”
This webinar discussed the findings of the report and how the research can be used to educate various stakeholders. NIRS Research Director Tyler Bond was joined by Jim Palmieri of AARP and Tracey Gronniger of Justice in Aging for the webinar.
Social Security at 90: A Bipartisan Roadmap for the Program’s Future
The National Academy of Social Insurance, AARP, the National Institute on Retirement Security, and the U.S. Chamber of Commerce have released a new report detailing American’s views of retirement, Social Security at 90: A Bipartisan Roadmap for the Program’s Future.
Social Security’s First 90 Years: A History of Bipartisan and Intergenerational Support
As Social Security approaches its 90th anniversary, a new report from the National Institute on Retirement Security finds that public support remains strong for Social Security, and Americans become more confident in Social Security as they age.
Views of Retirement in America by Political Party Affiliation
Despite deep polarization across the U.S., a research brief from the National Institute on Retirement Security finds common ground when it comes to Americans’ support for Social Security and defined benefit pension plans. At the same time, Views of Retirement in America by Political Party Affiliation finds Americans across party lines are worried about retirement. […]
