The Importance of Social Security

Many people downplay Social Security benefits in their retirement planning. Most people who’ve been retired for a while, however, report that Social Security is an important part of their financial well-being. Now, a new study by the Census Bureau (subscription might be required) reveals that without Social Security a majority of U.S. seniors would be classified as poor. Be sure you don’t take Social Security likely. Review your benefits and consider strategies for maximizing the benefits to you and your loved ones.

The latest figures show how important America’s social policies—everything from Social Security to the Earned Income Tax Credit—are for the incomes of Americans, especially seniors and children. If Census were to exclude Social Security benefits from income, the poverty rate for American seniors would jump from 14.6% to a whopping 52.6%—roughly 23.4 million people. The nation’s overall poverty rate (based on the alternative measure) would rise to 24.1% from 15.5%.