THE ECONOMIC WELL-BEING OF SOCIAL-SECURITY BENEFICIARIES, WITH ON EMPHASIS ON DIVORCED BENEFICIARIES

There are numerous types of benefits paid under the Social Security pr ograms of the United States, with each type of benefit having its own set of eligibility rules and benefit formula. It is likely that there is an association between the type of benefit a person receives and th e economic circumstances of the beneficiary. This article explores tha t association using records from the Current Population Survey exactly matched to administrative records from the Social Security Administra tion. Divorced beneficiaries are a particular focus of this article. T ype of benefit is found to be a strong predictor of economic well-bein g. Two large groups of beneficiaries, retired-worker and aged married spouse beneficiaries, are fairly well-off. Other types of beneficiarie s tend to resemble the overall U.S. population or are decidedly worse off. Divorced spouse beneficiaries have an unusually high incidence of poverty and an unusually high incidence of serious health problems. A proposal to increase benefits for these beneficiaries is evaluated. R esults of the analyses indicate that much of the additional Government expenditures would be received by those with low income.