ment employees and the income re- striction on veterans’ pensions has Note3 and Briej Reports been as high as $1,400 a Year for a Economic Status of Aged ferring employment to retirement single person and $2,700 for a mar- benefits, represented more than half ried man. The number of old-age Persons, June 1954 * the 2.6 million earners aged 65 and and survivors insurance beneficiaries In mid-1954. 70 percent of all per- over who were not receiving retire- with some earnings will doubtless in- sons 65 years of age and over in the ment benefits under old-age and sur- crease beginning in 1955, when the continental had income vivors insurance at the end of June liberalized retirement test Provisions from employment or social insurance 1954. in the 1954 amendments go into effect. or both. Approximately half the re- There were about 400,000 aged per- The public assistance Program, al- maining persons aged 65 and over sons receiving old-age and survivors though of declining importance as a were receiving old-age assistance. Al- insurance benefits in June 1954 who source of income for the aged, has most 5 million aged persons-about 2 at the same time had some income continued to be highly important for in every 5 men and 1 in every 3 wom- from employment. Many of this group those needy aged persons who are en-were getting old-age and sur- undoubtedly had only casual employ- ineligible for old-age and survivors vivors insurance benefits. An addi- ment. perhaps a few hours a week insurance or unable to make ends tional 1.2 million persons benefited or a few days a month, which pro- meet on their benefit checks. Old- directly or indirectly from related vided a supplement to their benefit age assistance recipients during the prugrams: railroad retirement, gov- checks. Others, aged 75 and over and past 2 years have numbered about ernment employees’ retirement, or therefore not subject to the retire- 2.5 million, including 400,000-500,000 the veterans’ compensation and pen- ment test, had full-time employment. persons who were also receiving old- sion programs. More than 100,000 persons receiving age and survivors insurance benefits. Old-age and survivors insurance benefits under another public retire- The number who receive checks from benefit checks reached 36 percent of ment program or the veterans’ pro- both programs has been increasing all persons aged 65 and over in June grams also had some income from gradually, but the rise has been pro- 1954, compared with 32 percent a employment (not shown separately portionately slower than the increase year earlier and 26 percent in June on the table). It is probable that in the number of old-age and sur- 1952. Beneficiaries outnumbered old- relatively more beneficiaries under vivors insurance beneficiaries: and in age assistance recipients almost 2 to 1 these programs than under old-age June this group comprised less than and exceeded by 25 percent the num- and survivors insura.nce had income from employment, since the retire- ‘Ruth White, “Concurrent Racelpt of ber with any income from employ- Public Assistance and Old-Age and f&r- ment during the month. In contrast ment test has tended to be less vivors Insurance,” Sodal Security Bull& to the rapid growth of old-age and strict under the systems for govern- tin, August, 1954. survivors insurance as a source of income, both employment and old- Table L-Estimated number of persons aged 65 and over receiving money age assistance have declined in im- income from specified sources, June 1954 1 portance during recent years (chart ml millions] 1). While the total population aged - - 65 and over has been increasing al- solme of inmme2 Total Men W0me32 - most 3 percent per year, the number i- -- -- of aged persons at work and the Total population aged G and over ______.__.______13.7 6.4 7.3 -- -- number receiving public assistance Employment ______.__. ______1 3.9 l.5 were approxhnately the same in June E**DerS-_---.---.--.-----.--.------..------~------3.0 t: Wives of earners not themselves employed ______:: 1954 as in June of 1952 and 1953. Social insurance nnd related programs I- .______.______-. / 62 3.3 Old-age and survivors insurance______.__.______4.9 2.6 ii The decline in the proportion of Railroad retirement insurnnre.~~.~. ______.______.______.__ -/ .5 aged persons with earned income re- Government employees’ retirement prokmxns______._ I ,4 ;E :“2 Veterans’ compensation and pension prok%xns-. __ __ .______.4 flects in part a reduction in employ- Beneficiaries’ wives not in direct receipt of benefits____.__. .______:: Old-age assistsme______.__ .__. ______) 2:: --?:O ment opportunities for older workers No money income or income solely from other sources______-.__! 2.1 .4 ::: and. in part the effect of the amend- Income from more than one of specified sources______. .__._____..__ --_. ! 1.0 .3 ments passed in 1950 and 1952 that Employment and old-agr and survivors insurance ______..______. -. :i Old-age and survivors insurance and old-age assistance.___. .______. :i .3 :1 liberalized old-age and survivors in- Other’.....------._------~-----~------~------i .I .1 (‘1 surance benefit and coverage provi- - sions. On January 1, 1954, there were 1 Continental United States. Population esti- is between the old-age and survivors insursn~ and mates for 1954 sre not entirely comparable with veterans’ progrsms. nevertheless 1.4 million persons aged those for 1951-53used in previous Bulletin notes 1 Persons with income from socisl Insurance (other 65 and over who were fully insured on the economic status of the aged, becauseof revi- than old-age and survivors Lnsurance) or a related sions by the Bureau of the Census. promm and from employment or old-age assistance. but not receiving benefits. Such per- s The sum of the persons shown under the four 5 Fewer than 60,000. categories exceeds tlie number in the population Eource: Number of persons of specified age, ssx, sons, substantially a!1 of them pre- by the number with income from more than one of and marital nnd earner status estimated from pub- the three main sources, BSshown at the end of the lished and unpublished data of the Bureau of thr table. Persons with income from sources specified Census. Number of persons receiving paymenta *Prepared by Lenore A. Epstein, Divi- msy also have received income from other sources. under social insurance and related programs and sion of Research and Statistics, OfRce of 8 Personswith income from more than one program from old-age assistonce reported by administrative the Commissioner. sre counted only once. The principal duplication agencies (partly estimstod).

16 Social Security Chart l.-Percent of persons aged 65 and over with income from old-age and fifth were receiving old-age assist- survivors insurance, from employment, and from old-age assistance, June ance. 1950-June 1954 The fact that almost one-fourth PERCENT of all aged women were without in- come from employment or from one of the public income maintenance programs, compared with barely 6 percent of the men, reflects the much lower labor-force participation rates of women and their longer life-ex- pectancy rates. Since men are nor- mally in the labor force throughout most of their adult lives, they are eligible for retirement benefits after age 65 when they no longer are earn- ing-provided, of course, that they worked in covered employment. In June 1954 the percent of aged men and aged women, respectively, with income from one or both sources was 10 as follows:

Percent sollrceof income Total Men women -- Employment.. . __ _ _ .____ 20 38 21 Social insurance or related 11 program.. --- -______45 52 40 Either or both...... ____ 70 El.3 69 10 percent of all old-age and surviv- surance program. Some received peri- I i ors insurance beneficiaries. odic payments under individual an- Regardless of the benefit level, nuities and the settlement options of The situation was clearly very some beneilciaries will always have life insurance contracts. Others had different for aged women than for special needs-most often for medical income from real estate, stocks, aged men, with income from employ- care-that they cannot meet without bonds, or other investments. Some ment or social insurance much more assistance. It is expected, however, were living off their assets-that is, common among the latter even when that the 1954 amendments raising withdrawing from savings or using the 900,000 wives of earners are beneflt amounts (an average of $6, cash realized from the sale of assets. counted as having income from em- for example, for old-age benefits) A relatively small proportion received ployment. ‘%he wives of earners com- and liberalizing the retirement test assistance in cash from private wel- prised more than two-thirds of all will eliminate part of the need for fare agencies or cash contributions on aged women shown as having income public assistance payments to supple- a regular basis from relatives. Prob- from employment. The 600,000 wom- ment old-age and survivors insurance ably a substantial number were sup- en with some earnings from their own benefits for some persons. The liber- ported by children or other relatives employment plus the 873,000 women alization of eligibility requirements, with whom they lived. Some were in receiving benefits in their own right particularly the provision that applies public institutions. as retired workers comprised only to survivors of certain workers who All aged persons in institutions one-fifth of all aged women. died after 1939 and before September numbered less than half a million, An estimated 8 percent of the aged 1950, will doubtless result in the and certainly those in public institu- women receiving old-age and surviv- transfer of some persons from old- tions did not exceed 200,000-250,000. ors insurance benefits as retired age assistance to the old-age and sur- Perhaps 7-10 percent of the institu- workers in June 1954 were receiving vivors insurance rolls. tional residents aged 65 and over concurrent wife’s or widow’s benefits In June 1954, approximately 2.1 were beneficiaries of old-age and sur- -about 30,000and 35,000,respectively. million aged persons had no income vivors insurance or a related pro- Persons entitled to old-age benefits from employment, social insurance gram: and perhaps as many as one- may also be entitled to secondary and related programs, or an assist- (wife’s or husband’s, widow’s or ance program. Some of them received 2 See Jacob Fisher, “Trends in Institu- tional Care of the Aged,” Social Security widower’s, or parent’s1 benefits. If private industrial or union pensions, Bulletin, , for a summary of the secondary benefit is larger, both but the number was undoubtedly the latest data on the institutional popu- benefits are payable, but the second- small since most of the persons re- lation. There has been no enumeration of ary benefit is reduced by the amount ceiving private group pensions were the institutional population since 1960. Difierent methods of estimating the num- of the concurrent old-age benefit. Al- also eligible for and drawing beneflts ber of institutional residents in June 1954 though persons with concurrent ben- under the old-age and survivors in- yield figures that range around 450,500. efits appear on the rolls twice, they

Bulletin, December I954 17 are counted only once in table 1. It Table I.-Estimated number of children under age 18 with father dead and of Is relatively uncommon for men to wido ws under age 65 receiving money income from specified sources, June 1954 receive two benefits because a second- [In millions] ary beneflt based on a woman’s earn- ings would rarely exceed an old-age Widows under age 65 s Children -- benefit based on a man’s earnings.” source of income under are 18 with With 1 or Practically all the 2.7 million mar- f&t&r dead Total more children Other ried women living with their hus- under ere 18 j _- ~__ bands had some income from em- -1. Total in population a__...______-.__- .____ 2. 1 3.6 6.7 ’ 2.8 ployment or one of the public income -___ -1. maintenance programs-either in Employment 4~~~~.~~-~-~~----~-~~~~---~-----~~~-~~~~ .2 1.9 .4 i 1.6 Social insurance and related programs 6.______1.2 their own right or through their hus- Oldage and survivors insurance.. ______:i :i Veterans’ compensation and pension programs. .___ 1:; I .5 .l i! “I~ bands. Of the 4 million aged widows, Railroad and government employees’ retirement I / however, scarcely 8 percent had in- prowms _.___-______.__.--.------______(9 Aid to dependent children ______.______._.--.-.--_ :a ’ :: ./ 0.l come from employment, and at most - about a third had benefits under old- 1 Continental United Ststes. Source: Number of children and of widows in the age and survivors insurance or a re- 1 Excludes widows who have remarried. population and number with employment and with *Includes persons with no income and income children under age 16estimated from ubllshed and lated program. Many widows were sup- solely from sourcesother than those specified. Some unpublished data of the Bureau o P the Census. ported in whole or in part by old-age persons received income from more than one of the Number of children under age 18 with father dead specified sources; some with income from sources based on estimate for prepared by the assistance, but even more of them specified also received income from other sources. Division of the Actuary, Social Security Adminis- 4 Includes only persons working for psy or profit tration. Number of persons receiving payments had no income from the sources un- and not those supported by the earnings of a relative. under social insurance and related programs and der consideration. 6 Personswith income from more then one program from aid to dependent children reported by admlnis- we counted only once. tnitive agencies (partly estimated). 0 Fewer that] 50.006. 8 See Ann?lal Statistkal Supplement, 1953, tables 41-43 (Social Security Bulle- tin, ). for information on the United States. As shown in chart cisely because available information dual entitlements at the end of 1953. 1, there was considerable overlap concerning recipients of aid to de- between the programs, with about 7 pendent children on the reasons for percent of all the paternal orphans lack of support relates to the “most Economic Status of receiving benefits under both. Other recent” father rather than the na- social insurance programs were of tural father.2 Widows and Paternal slight importance as a source of in- According to a study conducted by Orphans, June 1954 * come for these children. the Bureau of the Census for the Although the 2.1 million paternal More than half the children receiv- Social Security Administration in orphans’ in the United States com- ing old-age and survivors insurance : about three-fifths of prise less than 4 percent of the Na- benefits in lived with the paternal orphans live in the tion’s children under age 18, they a mother who also received benefits. household of a relative who is em- are of special interest from a social Some lived with a widowed mother ployed. With respect to the employ- and economic point of view because who was not entitled because of em- ment of the orphans themselves, the of problems of support. ployment or remarriage. A child’s eli- 1949 study showed about 5 percent Old-age and survivors insurance, gibility for benefits is not affected by with some earnings. It appears prob- the programs administered by the the mother’s employment or her re- able, however, that in June 1954 the Veterans Administration, and related marriage unless he is adopted by a number of paternal orphans under programs provided income in June stepfather before the death of his age 18 with some income from their 1954 for about 60 percent of the chil- natural father. own employment was roughly 200,000, dren under age 18 with father dead. The rapid increase during the past - While the proportion of paternal or- 5 years in t.he number of survivor 2 In only about 6 percent phans receiving payments under the children under age 18 receiving old- of all children receiving aid to dependent veterans’ pension and compensation age and survivors insurance beneilts children were old-age and survivors in- programs has remained constant at has resulted in a continuous decline surance beneficiaries. The proportion re- ceiving both old-age and survivors in- about 15 percent since 1950, the pro- in the importance of aid to dependent surance beneflts and aid to dependent portion receiving old-age and sur- children as an income source for pa- children payments was much larger vivors insurance benefits has increased ternal orphans. The proportion re- among paternal orphans, who comprised from less than one-third to about ceiving such aid was down to 11 per- only 15-16 percent of all children in the one-half of all paternal orphans in cent in June 1954. A considerable continental United States receiving aid to dependent children. See Ruth White, number of the paterna1 orphans re- “Concurrent Receipt of Public Assistance *Prepared by Lenore A. Epstein, Dlvlsion ceiving aid to dependent children and Old-Age and Survivors Insurance.” of Research and Statistics, Of&e of the were beneficiaries under the old-age Social Security Bulletin, , Commissioner. and survivors insurance program pages 12-15. * The term paternal orphan, as used whose benefits needed supplementa- *See Jacob Fisher, “Orphans in the here, relates to all children with father United States,” Social Security Bulletin, dead. Including those who have lost both tion. This overlap, which is not shown , for a summary of data from parents. on chart 1, is difficult to measure pre- this survey.

18 Social Security