Income for the Population Ages 65 and Older: Evidence from the Health Retirement Study (HRS)
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Income for the Population AgedAges 65 and Older: Evidence from the Health Retirement Study (HRS)
Updated August 5, 2025
(R47341)
Jump to Main Text of Report
65 and Older: December 16, 2022
Evidence from the Health Retirement Study
Zhe Li
(HRS)
Analyst in Social Policy
Congress has expressed interest in improving retirement income security for older Americans. Congress has expressed interest in improving retirement income security for older Americans.
Paul S. Davies
Median household income (which lies at the middle of the household income distribution) for Median household income (which lies at the middle of the household income distribution) for
Specialist in Income
individuals individuals agedages 65 and older (or 65 and older (or aged individuals) was $) was $51,906 in 201755,000 in 2019. However, one-fifth of . However, one-fifth of
Security
individuals individuals agedages 65 and older had household incomes of less than $ 65 and older had household incomes of less than $21,84024,132, and one-fifth had , and one-fifth had
household incomes of $household incomes of $110,897116,252 or more. Household income for the married, which includes or more. Household income for the married, which includes
partnered households, is the sum of income from each spouse in the household; household partnered households, is the sum of income from each spouse in the household; household
income for single persons (i.e., those widowed, divorced or separated, and never married) is their income for single persons (i.e., those widowed, divorced or separated, and never married) is their
personal income.personal income.
Older Americans receive income from public programs such as Social Security (formally known as Old-Age, Survivors, and Older Americans receive income from public programs such as Social Security (formally known as Old-Age, Survivors, and
Disability Insurance, or OASDI) and Supplemental Security Income (SSI), earnings, pensions and retirement savings, asset Disability Insurance, or OASDI) and Supplemental Security Income (SSI), earnings, pensions and retirement savings, asset
income, and others. This report addresses the number and proportion of aged individuals who received household income income, and others. This report addresses the number and proportion of aged individuals who received household income
from each source and the amount received, using the from each source and the amount received, using the20182020 Health and Retirement Study (HRS) linked with administrative Health and Retirement Study (HRS) linked with administrative
data from the Social Security Administration (SSA). Income reflects the annual amount received in data from the Social Security Administration (SSA). Income reflects the annual amount received in2017.
2019.
Social Security was the most common source of income among the aged in Social Security was the most common source of income among the aged in 20172019. Approximately . Approximately 9392% of individuals % of individuals agedages 65 65
and older received household income from Social Security. The median annual household Social Security benefit amount and older received household income from Social Security. The median annual household Social Security benefit amount
was $was $22,08024,115. Social Security was the largest single-source of income among the aged, representing approximately . Social Security was the largest single-source of income among the aged, representing approximately 2829.5% of % of
aggregate income for individuals aggregate income for individualsagedages 65 and older in 65 and older in 20172019. Social Security accounted for about 83% of aggregate income . Social Security accounted for about 83% of aggregate income
for aged individuals in the bottom 20% of the household income distribution, compared to for aged individuals in the bottom 20% of the household income distribution, compared to1112% of aggregate income for aged % of aggregate income for aged
individuals in the top 20% of the household income distribution.individuals in the top 20% of the household income distribution.
AgedAges 65 and Older by Household Income
Quintile, 2017
Quintile, 2019 Source: CRS analysis of the CRS analysis of the20182020 Health and Retirement Study (HRS). Health and Retirement Study (HRS).
Notes: Each household income quintile represents 20% of the individuals. The Each household income quintile represents 20% of the individuals. The1stfirst quintile includes those with the lowest household quintile includes those with the lowest household
income. The income. The5thfifth quintile includes those with the highest household income. Household income quintile quintile includes those with the highest household income. Household income quintile limits: $21,840, $39,700,
$64,295, $110,897. Pensions and retirement savings: Defined Benefit (DB) and Defined Contribution (DC)upper bounds are $24,132, $43,252, $68,480, and $116,252, and the fifth quintile has a lower bound of $116,253 and includes incomes up to the highest value in the data set. Pensions and retirement savings: defined benefit and defined contribution pension plans, Individual pension plans, Individual
Retirement AccountsRetirement Accounts (IRAs). Asset income: business income, interest, dividends, rents. Other income: veteran benefits, workers. Asset income: business income, interest, dividends, rents. Other income: veteran benefits, workers’
' compensation, unemployment compensation, alimony, child support, financial assistance from outside the household. Public compensation, unemployment compensation, alimony, child support, financial assistance from outside the household. Public
assistance: assistance:SSISupplemental Security Income, other welfare income. Values have been adjusted for population weights provided by the HRS. Individual components , other welfare income. Values have been adjusted for population weights provided by the HRS. Individual components
may not sum to 100% due to rounding.may not sum to 100% due to rounding.
About 60
About 59% of individuals % of individuals agedages 65 and older received household income from pensions, annuities, and Individual Retirement 65 and older received household income from pensions, annuities, and Individual Retirement
Accounts (IRAs). The median household amount among recipients was $Accounts (IRAs). The median household amount among recipients was $18,00019,644. Pensions and retirement savings accounted . Pensions and retirement savings accounted
for for2624% of aggregate income for all individuals % of aggregate income for all individuals agedages 65 and older, compared to 6% of aggregate income for those in the 65 and older, compared to 6% of aggregate income for those in the
bottom 20% of the household income distribution.bottom 20% of the household income distribution.
Congressional Research Service
Income for the Population Aged 65 and Older
About About 5556% of individuals % of individuals agedages 65 and older received household income from assets (business income, interest, dividends, 65 and older received household income from assets (business income, interest, dividends,
rent) in rent) in20172019. The median amount was $1,. The median amount was $1,400332. Asset income accounted for . Asset income accounted for 21% of the aggregate income of aged individuals % of the aggregate income of aged individuals
in the bottom 20% of the household income distribution, compared with in the bottom 20% of the household income distribution, compared with2018% among those in the top 20% of the household % among those in the top 20% of the household
income distribution.income distribution.
About About 5962% of individuals % of individuals aged 65 to ages 65-69 received household income from earnings in 69 received household income from earnings in 20172019, compared with , compared with 2526% of those % of those
agedages 70 and older. The median household earnings 70 and older. The median household earnings amount among all older workers was $among all older workers was $32,00036,500. The percentage of aggregate . The percentage of aggregate
income from earnings was income from earnings was34% for those in the bottom 20% of the household income distribution, compared with % for those in the bottom 20% of the household income distribution, compared with 3339% for % for
those in the top 20% of the household income distribution.those in the top 20% of the household income distribution.
About 8% of individuals About 8% of individuals agedages 65 and older received household income from public assistance (mainly SSI) in 65 and older received household income from public assistance (mainly SSI) in 20172019, with a , with a
median annual amount of $median annual amount of $1,7642,160. Public assistance accounted for . Public assistance accounted for over 10approximately 6% of aggregate income for aged individuals in the % of aggregate income for aged individuals in the
bottom 20% of the household income distribution.
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Contents
Introduction ..................................................................................................................................... 1
Data: Health and Retirement Study (HRS)...................................................................................... 3
Income Sources for Individuals Aged 65 and Older........................................................................ 6
Social Security .......................................................................................................................... 7
Pensions and Retirement Savings ............................................................................................. 8
Asset Income ........................................................................................................................... 10
Earnings .................................................................................................................................. 10
Public Assistance ..................................................................................................................... 10
Other Income ............................................................................................................................ 11
Income for Aged Individuals, by Marital Status............................................................................. 11
Income for Aged Individuals, by Household Income Quintiles .................................................... 14
Income for Aged Individuals, by Race/Ethnicity .......................................................................... 17
Income for Aged Individuals, by Age Groups ............................................................................... 19
Income Dependency on Social Security Benefits .......................................................................... 22
Figures
Figure 1. Share of Aggregate Income from Each Source Among Individuals Aged 65 and
Older, 2017 ................................................................................................................................... 6
Figure 2. Median Household Income for Individuals Aged 65 and Older by Marital
Status, 2017 ................................................................................................................................ 12
Figure 3. Share of Individuals Aged 65 and Older That Received Household Income from
Each Income Source by Marital Status, 2017 ............................................................................ 13
Figure 4. Share of Aggregate Income from Each Income Source Among Individuals Aged
65 and Older by Marital Status, 2017 ......................................................................................... 14
Figure 5. Share of Individuals Aged 65 and Older That Received Household Income from
Selected Source by Household Income Quintile, 2017 .............................................................. 15
Figure 6. Share of Aggregate Income from Each Source Among Individuals Aged 65 and
Older by Household Income Quintile, 2017 .............................................................................. 16
Figure 7. Median Household Income for Individuals Aged 65 and Older by
Race/Ethnicity, 2017 .................................................................................................................. 17
Figure 8. Share of Individuals Aged 65 and Older That Received Household Income from
Each Income Source by Race/Ethnicity, 2017 ........................................................................... 18
Figure 9. Share of Aggregate Income from Each Income Source Among Individuals Aged
65 and Older by Race/Ethnicity, 2017 ........................................................................................ 19
Figure 10. Median Household Income for Individuals Aged 65 and Older by Age Group,
2017 ............................................................................................................................................ 20
Figure 11. Share of Individuals Aged 65 and Older That Received Household Income
from Each Income Source by Age Group, 2017 ........................................................................ 21
Figure 12. Share of Aggregate Income from Each Income Source Among Individuals
Aged 65 and Older by Age Group, 2017 .................................................................................... 21
Figure 13. Percentage of Individuals Aged 65 and Older by Selected Proportion of
Household Income from Social Security Benefits, 2017 ........................................................... 24
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Tables
Table 1. Individual Income and Household Income for Individuals Aged 65 and Older,
2017 .............................................................................................................................................. 5
Table 2. Share of Individuals Aged 65 and Older in Households That Received Income,
and Median Amount of Household Income, by Income Source, 2017......................................... 7
Table A-1. Percentage of Individuals Aged 65 and Older That Received Household
Income and the Distribution of Household Income by Source of Income, 2017 ....................... 26
Table A-2. Percentage of Individuals Aged 65 and Older That Received Household
Income from Each Income Source by Source of Income, Marital Status and Household
Income Quintile, 2017 ................................................................................................................ 27
Table A-3. Percentage of Aggregate Income from Each Income Source Among
Individuals Aged 65 and Older by Marital Status and Household Income Quintile, 2017 ........ 28
Table A-4. Percentage of Individuals Aged 65 and Older That Received Household
Income by Source of Income, Marital Status, and Race/Ethnicity, 2017 ................................... 30
Table A-5. Percentage of Aggregate Income from Each Income Source Among
Individuals Aged 65 and Older by Marital Status and Race/Ethnicity, 2017 ............................. 31
Appendixes
Appendix. Additional Income Tables for Individuals Aged 65 and Older .................................... 26
Contacts
Author Information ........................................................................................................................ 33
Congressional Research Service
Income for the Population Aged 65 and Older: Evidence from the Health Retirement Stud
Introduction
bottom 20% of the household income distribution.
Social Security (formally known as Old-Age, Survivors, and Disability Insurance, or OASDI) and Social Security (formally known as Old-Age, Survivors, and Disability Insurance, or OASDI) and
Supplemental Security Income (SSI), as well as pensions and retirement savings, earnings, Supplemental Security Income (SSI), as well as pensions and retirement savings, earnings,
interests and dividends. Because Americans interests and dividends. Because Americansagedages 65 and older (or 65 and older (or aged individuals) represent a ) represent a
large and growing proportion of the U.S. population, and because much of their income is large and growing proportion of the U.S. population, and because much of their income is
provided through government-sponsored social insurance or income transfer programs or is provided through government-sponsored social insurance or income transfer programs or is
subsidized through income tax deductions and deferrals, the sources and amounts of income subsidized through income tax deductions and deferrals, the sources and amounts of income
among older Americans are important in congressional policy discussions.among older Americans are important in congressional policy discussions.
Americans are living longer than they were Americans are living longer than they were fourfive decades ago. In 1975, the average number of decades ago. In 1975, the average number of
years a 65-yearyears a 65-year -old American could expect to live was 14.2 years for men and 18.7 years for old American could expect to live was 14.2 years for men and 18.7 years for
women. In women. In20222025, the Social Security Board of Trustees estimated that individuals attaining age 65 , the Social Security Board of Trustees estimated that individuals attaining age 65
in 2022in 2025 will live for an average of 19. will live for an average of 19.13 years for men and 21. years for men and 21.78 years for women. years for women.11 As the As the
relatively larger number of individuals born from 1946 through 1964 (or baby boomers) live into relatively larger number of individuals born from 1946 through 1964 (or baby boomers) live into
old ages, together with the aging population more generally, the age profile of the population old ages, together with the aging population more generally, the age profile of the population
shifts. In shifts. In20212024, there were about , there were about 57.863.4 million Americans million Americans agedages 65 and older, representing 65 and older, representing 17.3%
18.5% of the population. By 2040, according to projections made by the U.S. Census Bureau, there will of the population. By 2040, according to projections made by the U.S. Census Bureau, there will
be 80.8 million people be 80.8 million peopleagedages 65 and older, constituting 21.6% of the U.S. population. 65 and older, constituting 21.6% of the U.S. population.2
2
Federal expenditures for retirement income of older Americans are also a large proportion of total Federal expenditures for retirement income of older Americans are also a large proportion of total
federal spending. In federal spending. InFY2023FY2025, for example, federal expenditures for Social , for example, federal expenditures for Social Security3Security3 will be will be
approximately $1.approximately $1.3154 trillion, representing more than trillion, representing more than 2322% of total federal spending and nearly % of total federal spending and nearly
3638% of federal spending on entitlement programs.% of federal spending on entitlement programs.44 The federal government also provides income The federal government also provides income
directly to low-income older Americans through the SSI directly to low-income older Americans through the SSIprogram5program5 and to retired federal and to retired federal
employees through the Civil Service Retirement System and the Federal Employeesemployees through the Civil Service Retirement System and the Federal Employees’' Retirement Retirement
System.System.66 In addition, the public also subsidizes the income of older Americans through several In addition, the public also subsidizes the income of older Americans through several
tax deferrals and deductions in the Internal Revenue Code.tax deferrals and deductions in the Internal Revenue Code.77 These tax incentives are designed to These tax incentives are designed to
promote sponsorship of pension plans by employers and encourage workers to save for promote sponsorship of pension plans by employers and encourage workers to save for
retirement. The tax deductions and deferrals granted to qualified retirement plans are one of the
1 Social Security Board of Trustees, The 2022 Annual Report of the Board of Trustees of the Federal Old-Age and
Survivors Insurance and Federal Disability Insurance Trust Funds, 2022, Table V.A5,https://www.ssa.gov/OACT/TR/
2022/lr5a5.html (hereinafter, “Social Security 2022 Annual Report”). The estimates are cohort life expectancy under
the trustees’ intermediate assumptions. The cohort life expectancy at a given age for a given year is the average
remaining number of years expected prior to death for a person at that exact age, born on January 1, using the mortality
rates for the series of years in which the individual will actually reach each succeeding age if he or she survives.
2 See U.S. Census Bureau, 2017 National Population Projections Datasets, Table 1, at https://www.census.gov/data/
datasets/2017/demo/popproj/2017-popproj.html.
3 See CRS Report R42035, Social Security Primer, by Barry F. Huston.
4 See Office of Management and Budget (OMB), Budget of the United States Government, Fiscal Year 2022, Table S-
3, https://www.govinfo.gov/content/pkg/BUDGET-2023-BUD/pdf/BUDGET-2023-BUD.pdf. In August 2022, about
80% of Social Security beneficiaries were 65 years of age and older. See Social Security Administration (SSA),
Monthly Statistical Snapshot, August 2022, Table 1, at https://www.ssa.gov/policy/docs/quickfacts/stat_snapshot/.
5 See CRS In Focus IF10482, Supplemental Security Income (SSI), by William R. Morton.
6 See CRS Report 98-810, Federal Employees’ Retirement System: Benefits and Financing, by Katelin P. Isaacs, and
CRS Report 98-972, Federal Employees’ Retirement System: Summary of Recent Trends, by Katelin P. Isaacs.
7 Examples include the Employee Retirement Income Security Act (ERISA, P.L. 93-406) and the Revenue Act of 1978
(P.L. 95-600).
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Income for the Population Aged 65 and Older
retirement. The tax deductions and deferrals granted to qualified retirement plans are one of the largest tax expenditures in the federal budget and will reduce federal tax revenues by an estimated largest tax expenditures in the federal budget and will reduce federal tax revenues by an estimated
$184$211 billion in billion in FY2023.8
FY2025.8
Congress may be interested in the sources and amounts of income among aged individuals, given Congress may be interested in the sources and amounts of income among aged individuals, given
that current and projected limitations of social insurance and retirement programs may affect that current and projected limitations of social insurance and retirement programs may affect
retirement income security among the older population. For example, Social Security is facing a retirement income security among the older population. For example, Social Security is facing a
projected long-range funding shortfall.projected long-range funding shortfall.99 The Social Security trust funds began to decline in 2021 The Social Security trust funds began to decline in 2021
and the Board of Trustees project that the asset reserves will be depleted in and the Board of Trustees project that the asset reserves will be depleted in20352034. After depletion . After depletion
of trust fund reserves, the programof trust fund reserves, the program’'s continuing income would be sufficient to pay s continuing income would be sufficient to pay 8081% of % of
benefits scheduled under current law in benefits scheduled under current law in20352034, declining to , declining to 7472% of scheduled benefits in % of scheduled benefits in 2096.10
2099.10 Moreover, Social Security provides benefits to most retirees, and many aged individuals rely on Moreover, Social Security provides benefits to most retirees, and many aged individuals rely on
Social Security benefits for a substantial portion of their income. However, the benefit amounts Social Security benefits for a substantial portion of their income. However, the benefit amounts
for certain individuals are below the poverty line, such as some long-term low-wage earners.for certain individuals are below the poverty line, such as some long-term low-wage earners.1111 In In
addition, Congress has expressed interest in policies affecting pensions and retirement savings as addition, Congress has expressed interest in policies affecting pensions and retirement savings as
the pension landscape has changed in recent decades. In the private sector, employer-sponsored the pension landscape has changed in recent decades. In the private sector, employer-sponsored
defined benefit (DB) pension plans, which guarantee retirees a lifetime stream of cash benefits, defined benefit (DB) pension plans, which guarantee retirees a lifetime stream of cash benefits,
have largely been replaced by definedhave largely been replaced by defined- contribution (DC) retirement plans, such as 401(k) plans, contribution (DC) retirement plans, such as 401(k) plans,
in which retirement income is based on funds that accumulate in a workerin which retirement income is based on funds that accumulate in a worker’'s account.s account.1212 However, However,
data from Internal Revenue Service (IRS) tax statistics hasdata have shown that shown that aboutnearly half of private sector workers did not participate in either DB or DC retirement plans in 2023.13
half of taxpayers
with wage income did not have access to DC plans between 2008 and 2017.13
Additionally, the sources and amounts of income for aged individuals vary substantially by Additionally, the sources and amounts of income for aged individuals vary substantially by
demographic and socioeconomic characteristics. Understanding income disparities among aged demographic and socioeconomic characteristics. Understanding income disparities among aged
individuals could help identify vulnerable populations and identify targeted policy options. For individuals could help identify vulnerable populations and identify targeted policy options. For
example, research has shown large and persistent disparities in retirement income and wealth example, research has shown large and persistent disparities in retirement income and wealth
across socioeconomic characteristics.across socioeconomic characteristics.1414 Evidence also shows that Social Security and SSI Evidence also shows that Social Security and SSI
accounted for a larger share of total income among lower-income individuals accounted for a larger share of total income among lower-income individualsagedages 65 and older, 65 and older,15
15 and DB pensions remain a vital resource for those who expect such income in retirement, which and DB pensions remain a vital resource for those who expect such income in retirement, which
is about 18% of White families, 18% of Black families, and 12% of Hispanic families with heads
aged 40 to 59 in 2019.16
8 OMB, Budget of the United States Government, Fiscal Year 2023: Analytical Perspectives, Table 13-1, at
https://www.govinfo.gov/content/pkg/BUDGET-2023-PER/pdf/BUDGET-2023-PER.pdf. Other large tax expenditures
in the federal budget may include the exclusion of employer contributions for medical insurance premiums and medical
care. Congress also allows taxpayers aged 65 and older to claim an additional standard deduction on their income tax
returns. This deduction will reduce federal tax revenues by an estimated $6.5 billion in FY2023.
9 See CRS In Focus IF10522, Social Security’s Funding Shortfall, by Barry F. Huston.
10 Social Security 2022 Annual Report.
11 See CRS Report R43615, Social Security: Minimum Benefits, by Zhe Li.
12 See CRS Report R43439, Worker Participation in Employer-Sponsored Pensions: Data in Brief, by John J.
Topoleski and Elizabeth A. Myers.
13 Karen E. Smith, C. Eugene Steuerle, and Damir Cosic, Preparing for Retirement Reforms: Potential Consequences
for Saving, Work, and Retirement Plans, the Urban Institute, October 2021.
14 Government Accountability Office, Retirement Security: Income and Wealth Disparities Continue Through Old Age,
GAO-19-587, August 2019.
15 Adam Bee and Joshua Mitchell, Do Older Americans Have More Income Than We Think?, Census Bureau, SESHD
Working Paper no. 2017-39, July 2017, at https://www.census.gov/content/dam/Census/library/working-papers/2017/
demo/SEHSD-WP2017-39.pdf.
16 Jeffrey Thompson and Alice Henriques Volz, A New Look at Racial Disparities Using a More Comprehensive
Wealth Measure, Federal Reserve Bank of Boston, Current Policy Perspective, August 16, 2021.
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is about 18% of White families, 18% of Black families, and 12% of Hispanic families with heads ages 40-59 in 2019.16
This report describes household income for individuals This report describes household income for individuals agedages 65 and older, based on data from the 65 and older, based on data from the
20182020 Health and Retirement Study (HRS) linked with administrative data from the Social Health and Retirement Study (HRS) linked with administrative data from the Social
Security Administration (SSA); Security Administration (SSA);20182020 is the most recent survey year for which the linked data is the most recent survey year for which the linked data
were available. Analysis focuses on the sources and amounts of income received in the prior were available. Analysis focuses on the sources and amounts of income received in the prior
calendar year (calendar year (20172019) by aged individuals, the number and proportion of people receiving ) by aged individuals, the number and proportion of people receiving
household income from each source, and the amounts of income they receive from each source. household income from each source, and the amounts of income they receive from each source.
The report also shows how income received by aged individuals differs by marital status, age The report also shows how income received by aged individuals differs by marital status, age
group, race/ethnicity, and household income level. Since policymakers may be interested in how group, race/ethnicity, and household income level. Since policymakers may be interested in how
the Social Security program affects the household income of the older population, this report also the Social Security program affects the household income of the older population, this report also
discusses the proportion of individuals discusses the proportion of individualsagedages 65 and older who substantially depend on Social 65 and older who substantially depend on Social
Security income and the characteristics of those individuals.Security income and the characteristics of those individuals.1717
Data: Health and Retirement Study (HRS)
This report uses data from the This report uses data from the20182020 HRS, reflecting income sources and amounts received in HRS, reflecting income sources and amounts received in
calendar year calendar year2017.2019.18 Administrative records from the SSA, linked to the HRS at the individual Administrative records from the SSA, linked to the HRS at the individual
level, provide data on the receipt and amount of Social Security benefits, SSI payments, earnings, level, provide data on the receipt and amount of Social Security benefits, SSI payments, earnings,
and self-employment income.and self-employment income.
The HRS has become a leading source of data on aging in America.The HRS has become a leading source of data on aging in America.1819 A longitudinal, nationally- A longitudinal, nationally-
representative survey of the population over age 50, the HRS core survey is conducted by the representative survey of the population over age 50, the HRS core survey is conducted by the
University of MichiganUniversity of Michigan’'s Institute for Social Research (s Institute for Social Research (Michigan/ISR) every two years through a ISR) every two years through a
combination of face-to-face and telephone interviews. Information is collected at both the combination of face-to-face and telephone interviews. Information is collected at both the
individual and household levels on a wide-range of topics including health, health services, labor individual and household levels on a wide-range of topics including health, health services, labor
force involvement (work, earnings, retirement, disability), economic status (income sources and force involvement (work, earnings, retirement, disability), economic status (income sources and
amounts, wealth by asset type, Social Security, pensions), family structure, and expectations. The amounts, wealth by asset type, Social Security, pensions), family structure, and expectations. The
household level data for married individuals include information from each spouse in the household level data for married individuals include information from each spouse in the
household. Every six years, a new six-year birth cohort is added to the HRS sample to maintain household. Every six years, a new six-year birth cohort is added to the HRS sample to maintain
its representation of the older population. In any given wave of data collection, the HRS includes its representation of the older population. In any given wave of data collection, the HRS includes
about 20,000 respondents. In total, over 43,000 respondents have participated in the HRS since its about 20,000 respondents. In total, over 43,000 respondents have participated in the HRS since its
inception in 1992. This report utilized the so-called RAND HRS data files, which are a series of inception in 1992. This report utilized the so-called RAND HRS data files, which are a series of
publicly-available, user-friendly HRS data files produced by RAND to improve the ease-of-use of publicly-available, user-friendly HRS data files produced by RAND to improve the ease-of-use of
the HRS and to promote the quality and consistency of the HRS data through standardized the HRS and to promote the quality and consistency of the HRS data through standardized
naming conventions, definitions, and documentation across HRS waves.naming conventions, definitions, and documentation across HRS waves.19
20
HRS respondents are asked to provide written consent to authorize SSA to release Social Security HRS respondents are asked to provide written consent to authorize SSA to release Social Security
and SSI benefits and earnings records to and SSI benefits and earnings records toMichigan/ISR for research purposes. Across all waves of ISR for research purposes. Across all waves of
the HRS, roughly 70% of respondents have provided such consents. The linked HRS-SSA data the HRS, roughly 70% of respondents have provided such consents. The linked HRS-SSA data
may be accessed by authorized researchers with approved research projects, subject to a number
17 Individuals with the same cash income may have different levels of financial assets or wealth, home ownership, and
non-cash benefits from government transfer programs (such as school lunch, Medicaid, and Low-Income Home Energy
Assistance Program), which are also factors that affect a person’s economic well-being. This report does not address
these other factors. In addition, this report does not discuss the question of retirement adequacy or whether the income
level is sufficient to meet retirement needs.
18 University of Michigan, Institute for Social Research (ISR), The Health and Retirement Study: Aging in the 21st
Century, January 2017, https://hrsonline.isr.umich.edu/sitedocs/databook/inc/pdf/HRS-Aging-in-the-21St-Century.pdf.
19 RAND, “RAND HRS Data Products,” https://www.rand.org/well-being/social-and-behavioral-policy/centers/aging/
dataprod.html. See also Health and Retirement Study (HRS), “RAND HRS Data Products,”
https://hrsdata.isr.umich.edu/data-products/rand.
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may be accessed by authorized researchers with approved research projects, subject to a number of constraints and disclosure protections proscribed by of constraints and disclosure protections proscribed by Michigan/ISR.20ISR.21 The combination of the The combination of the
richness of the HRS survey data with the details of SSArichness of the HRS survey data with the details of SSA’'s benefits and earnings records is s benefits and earnings records is
beneficial for a wide variety of research applications, including analysis of the income of the beneficial for a wide variety of research applications, including analysis of the income of the
population 65 or older.population 65 or older.21
22
In the sample of In the sample of 20182020 HRS respondents HRS respondents agedage 65 or older, this report used SSA administrative data 65 or older, this report used SSA administrative data
on Social Security and SSI benefits and earnings and self-employment income in place of HRS on Social Security and SSI benefits and earnings and self-employment income in place of HRS
survey reported measures for respondents who authorized their records to be released to survey reported measures for respondents who authorized their records to be released to
Michigan/ISR. If administrative records were not available (generally for respondents who did ISR. If administrative records were not available (generally for respondents who did
not authorize SSA to release their records to not authorize SSA to release their records toMichigan/ISR), this study used the survey reported ISR), this study used the survey reported
measures. Roughly measures. Roughly70.977.4% of respondents in this study had linked SSA administrative records on % of respondents in this study had linked SSA administrative records on
Social Security benefits, Social Security benefits,while 12.47.1% had linked records on SSI benefits% had linked records on SSI benefits, and and 7.132.6% had linked % had linked
records for earnings or self-employment income. The HRS survey data provide all other income records for earnings or self-employment income. The HRS survey data provide all other income
measures. Population weights provided by the HRS are applied to all reported estimates.measures. Population weights provided by the HRS are applied to all reported estimates.22
23
This report defines age and other demographic variables (gender, race/ethnicity, marital status) as This report defines age and other demographic variables (gender, race/ethnicity, marital status) as
of the survey date. Income measures pertain to one year before the survey year (i.e., of the survey date. Income measures pertain to one year before the survey year (i.e.,20172019). ).
Household income for married individuals is the sum of income from each spouse in the Household income for married individuals is the sum of income from each spouse in the
household,household,2324 and for single persons (e.g., those widowed, divorced or separated, and never and for single persons (e.g., those widowed, divorced or separated, and never
married) is that individualmarried) is that individual’'s personal income. The income used in this report is pre-tax income s personal income. The income used in this report is pre-tax income
(before income and payroll taxes), and is as reported below:(before income and payroll taxes), and is as reported below:
Social Security includes income from the Old Age, Survivors, and Disability includes income from the Old Age, Survivors, and Disability
Insurance (OASDI) program;Insurance (OASDI) program;24
25
Earnings include wage and salary earnings plus self-employment income; include wage and salary earnings plus self-employment income;
Pensions and retirement savings include income from DB pension plans, include income from DB pension plans,
annuities, and distributions from DC retirement accounts and Individual annuities, and distributions from DC retirement accounts and Individual
Retirement Accounts (IRAs);Retirement Accounts (IRAs);25
26
Asset income includes business income, interest, dividends, and rents;
PublicAsset income includes business income, interest, dividends, and rents;
20 HRS, “HRS Restricted Data,” https://hrs.isr.umich.edu/data-products/restricted-data.
21 Peter V. Miller, “Is There a Future for Surveys?” Public Opinion Quarterly, vol. 81, issue S1, April 2017,
https://academic.oup.com/poq/article-pdf/81/S1/205/13942332/nfx008.pdf. Paul S. Davies and T. Lynn Fisher,
“Measurement Issues Associated with Using Survey Data Matched with Administrative Data from the Social Security
Administration,” Social Security Bulletin, vol. 69, no. 2, 2009, https://www.ssa.gov/policy/docs/ssb/v69n2/
v69n2p1.html.
22 Estimates computed using different survey samples will likely differ from one another and from the “true”
population value, even when the samples are drawn from the same population. The margin of error is a measure of an
estimate’s variability due to sampling. The larger the margin of error is in relation to the size of the estimate, the less
reliable is the estimate. The HRS, although matched with administrative records for a certain percentage of the sample,
likely contains nonsampling error—error due to causes other than the fact that a sample was used in place of the entire
population (for instance, respondents misremembering or misreporting income amounts, respondents failing to answer
the questionnaire, or errors during the processing of the data file).
23 In the HRS, married individuals include those married and partnered.
24 This report uses Social Security benefits prior to the deduction of the Medicare Part B and/or Part D premiums. For
respondents with administratively matched records, the Social Security benefit amount before those deductions was
used; for observations where matched data are not available, Medicare Part B and/or Part D premiums were added in
instances when the respondent had deducted these amounts from reported Social Security benefits.
25 This report includes IRA withdrawals as part of the income source for pensions and retirement savings, since they are
treated as income for taxation purposes.
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Income for the Population Aged 65 and Older
Public assistance includes SSI benefits, dollars worth of Supplemental Nutrition
assistance includes SSI benefits, dollars worth of Supplemental Nutrition Assistance Program (SNAP) benefits,Assistance Program (SNAP) benefits,2627 and other welfare income; and other welfare income; and
and
Other income includes veterans includes veterans' benefits, workers benefits, workers’' compensation, unemployment compensation, unemployment
compensation, alimony, child support, and financial assistance from friends or compensation, alimony, child support, and financial assistance from friends or
relatives not living in the same household.relatives not living in the same household.
Individual Income vs. Household Income
This report uses the definition in the RAND HRS for the household income of individuals—the household income This report uses the definition in the RAND HRS for the household income of individuals—the household income
for married individuals is the sum of income from each spouse in the household; the household income for single for married individuals is the sum of income from each spouse in the household; the household income for single
individuals (i.e., those widowed, divorced or separated, and never married) is their individual income.individuals (i.e., those widowed, divorced or separated, and never married) is their individual income.
Table 1 displays median individual income and household income for individuals displays median individual income and household income for individualsagedages 65 and older in 65 and older in 2017.272019.28 In 2019 In
2017, almost all aged individuals received individual income and household income from one or more sources. , almost all aged individuals received individual income and household income from one or more sources.
Among aged individuals with income, the median individual income was $Among aged individuals with income, the median individual income was $29,21431,566, compared to the median , compared to the median
household income of $household income of $51,90655,000. The difference between individual income and household income primarily resulted . The difference between individual income and household income primarily resulted
from married individuals, for whom the median individual income was $from married individuals, for whom the median individual income was $32,22034,432 and median household income was and median household income was
$70,329.
$75,390. Table 1. Individual Income and Household Income for IndividualsAgedAges 65 and Older, 2019
65 and Older, 2017
Median income is limited to those individuals with income
All Individuals
Married
Single Persons
Individual
Household
Individual
Household
Individual
Household
Income
Income
Income
Income
Income
Income
Percentage of Percentage of
Individuals with Individuals with
Income
99.4%
99.6%
99.4%
99.8%
99.2%
99.2%
Income
Median Income
$29,214
$51,906
$32,220
$70,329
$25,740
$25,740
No. of Observations
9,011
5,054
3,947
Weighted Population
51,707
31,705
19,911
(in thousands)
Source: CRS analysis of data from the CRS analysis of data from the20182020 Health and Retirement Study Health and Retirement Study (HRS).
Notes: .
Notes: Median income is limited to those individuals with income. Household income for married individuals is the sum of income from each spouse in the household. Household income for married individuals is the sum of income from each spouse in the household. Al values
All values displayed in the table have been adjusted for population weights provided by the HRS. A displayed in the table have been adjusted for population weights provided by the HRS. A smal small number of individuals did number of individuals did
not report marital status in the survey. Those individuals are included in the not report marital status in the survey. Those individuals are included in theal all individuals count, but not in the married individuals count, but not in the married
individuals or single individuals counts.individuals or single individuals counts.
Compared with individual income, household income is generally considered to be a better measure for the Compared with individual income, household income is generally considered to be a better measure for the
income that is available to an aged individual.income that is available to an aged individual.2829 For example, many married couples share expenses in the For example, many married couples share expenses in the
household and may make financial decisions jointly, such as how many hours to work, who provides caregiving, household and may make financial decisions jointly, such as how many hours to work, who provides caregiving,
and how much to save for education, retirement, and other major expenditures. Some sources of income may
26 The HRS collects information about the “dollars worth” of SNAP benefits, which are included in the income sources.
The SNAP, formerly called the Food Stamp Program, is designed primarily to increase the food purchasing power of
eligible low-income households to help them buy a nutritionally adequate low-cost diet. For more information about
SNAP, see CRS Report R42505, Supplemental Nutrition Assistance Program (SNAP): A Primer on Eligibility and
Benefits, by Randy Alison Aussenberg and Gene Falk.
27 The median household income lies at the middle of the household income distribution. Half of individuals have
higher household income, and half have lower household income. The average household income is generally higher
than the median household income because a relatively small percentage of individuals have very high amounts of
household income. The median is therefore widely considered to be a more accurate measure of the household income
of a “typical” individual.
28 T. Lynn Fisher, “The Impact of the Unit of Observation on the Measurement of the Relative Importance of Social
Security Benefits to the Elderly,” Social Security Bulletin, vol. 67, no. 2 (2007).
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Income for the Population Aged 65 and Older
and how much to save for education, retirement, and other major expenditures. Some sources of income may also be jointly received by married couples, such as interest income from a jointly held financial account. Under also be jointly received by married couples, such as interest income from a jointly held financial account. Under
Social Security, a dependent spouse may receive monthly benefits based on the working spouseSocial Security, a dependent spouse may receive monthly benefits based on the working spouse’'s earnings s earnings
records.records.2930 In addition, household income may be used to determine the individual In addition, household income may be used to determine the individual’'s eligibility for means-tested s eligibility for means-tested
programs (e.g., programs (e.g.,SSI),30Supplemental Security Income),31 as those resources may be deemed available to meet the needs of the individual. For this as those resources may be deemed available to meet the needs of the individual. For this
reason, this report shows the household income level for aged individuals unless otherwise noted.reason, this report shows the household income level for aged individuals unless otherwise noted.
Income Sources for IndividualsAgedAges 65 and Older
The population The populationagedages 65 and older receive their income from Social Security, pensions and 65 and older receive their income from Social Security, pensions and
retirement savings, earnings, asset income, public assistance, and other sources.retirement savings, earnings, asset income, public assistance, and other sources.31 In 2017, about
three-quarters32 In 2019, nearly 81% of aggregate income of aged individuals came from Social Security, of aggregate income of aged individuals came from Social Security, earnings, and pensions and pensions and
retirement savingsretirement savings, and earnings. Social Security was the largest single source of income among . Social Security was the largest single source of income among
the aged, accounting for the aged, accounting for28.029.5% of aggregate income, while % of aggregate income, while pensions and retirement savings
constituted 25.8% of income, and earnings accounted for 23.8%. The remaining one-quarter of
earnings accounted for 27.3%, and pensions and retirement savings constituted 23.8% of income. The remaining 19% of aggregate income included income from assets, public assistance, and other sources (seeaggregate income included income from assets, public assistance, and other sources (see Figure
1).
AgedAges 65 65
and Older, 2017
2019 Source: CRS analysis of data from the CRS analysis of data from the20182020 Health and Retirement Study (HRS). Health and Retirement Study (HRS).
Notes: Pensions and retirement savings include pension income from employer-sponsored defined benefit and Pensions and retirement savings include pension income from employer-sponsored defined benefit and
defined contribution plans, annuities, and withdrawals from Individual Retirement Accountsdefined contribution plans, annuities, and withdrawals from Individual Retirement Accounts (IRAs). Asset income . Asset income
includes business income, interest, dividends, and rents. Other income includes veteran benefits, workersincludes business income, interest, dividends, and rents. Other income includes veteran benefits, workers’
' compensation, unemployment compensation, alimony, child support, and financial assistance from friends or compensation, unemployment compensation, alimony, child support, and financial assistance from friends or
relatives not living in the same household. Public assistance includes Supplemental Security Income relatives not living in the same household. Public assistance includes Supplemental Security Income(SSI) benefits,
dol ars worth of SNAPbenefits, dollars worth of Supplemental Nutrition Assistance Program benefits, and other welfare income. All values displayed in the table have been adjusted benefits, and other welfare income. All values displayed in the table have been adjusted
for population weights provided by the HRS. The sum of the components may not equal 100% due to rounding.for population weights provided by the HRS. The sum of the components may not equal 100% due to rounding.
Table 2 displays the share of individuals displays the share of individuals agedages 65 and older who received household income from 65 and older who received household income from
each income source in each income source in20172019. Among aged individuals with each type of income, the figure also . Among aged individuals with each type of income, the figure also
shows the median income amount for households who received that type of income. Detailed shows the median income amount for households who received that type of income. Detailed
29 See CRS Report R41479, Social Security: Revisiting Benefits for Spouses and Survivors, by Zhe Li.
30 See CRS In Focus IF10482, Supplemental Security Income (SSI), by William R. Morton.
31 Other income includes veteran benefits, workers’ compensation, unemployment compensation, alimony, child
support, and financial assistance from friends or relatives not living in the same household.
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information regarding the distribution of household income for each income source is shown in information regarding the distribution of household income for each income source is shown in
Table A-1.
Table 2. Share of IndividualsAgedAges 65 and Older in Households That Received
Income, and Median Amount of Household Income, by Income Source, 2017
Median income is limited to those individuals with each income source
2019
Share of Individuals in
Households that Received
Income Sources
Income
Income (%) Median Household Income ($)
Total
99.6%
51,906
Social Security
92.6%
22,080
Pensions and Retirement SavingsPensions and Retirement Savings
59.8%
18,000
Asset Income
54.5%
1,400
Earnings
36.5%
32,000
Public Assistance
8.1%
1,764
Other Income
16.9%
15,600
No. of Observations
9,011
Weighted Population (in thousands)
51,707
Source: CRS analysis of data from the 2018 Health and Retirement Study (HRS).
Notes: Pensions and retirement savings include pension income from employer-sponsored defined benefit and
defined contribution plans, annuities, and withdrawals from Individual Retirement Accounts (IRAs). Asset income
includes business income, interest, dividends, and rents. Other income includes veteran benefits, workers’
compensation, unemployment compensation, alimony, child support, and financial assistance from friends or
relatives not living in the same household. Public assistance includes SSI benefits, dol ars worth of SNAP benefits,
and other welfare income. All values displayed in the table have been adjusted for population weights provided
by the HRS.
Social Security
Social Security
Social Security provides monthly cash benefits to insured retired or disabled workers, their family Social Security provides monthly cash benefits to insured retired or disabled workers, their family
members, and certain family members of deceased workers.members, and certain family members of deceased workers.3233 Workers become insured for Social Workers become insured for Social
Security benefits for themselves and their family members by working in Social Security-covered Security benefits for themselves and their family members by working in Social Security-covered
employment and by making payroll tax contributions on those earnings.employment and by making payroll tax contributions on those earnings.3334 Among other Among other
requirements, a worker generally needs 40 earnings credits (10 years of covered employment) to requirements, a worker generally needs 40 earnings credits (10 years of covered employment) to
be eligible for a Social Security retired-worker benefit.be eligible for a Social Security retired-worker benefit.3435 The Social Security The Social Security full retirement age
(FRA) is the age at which workers can first claim (FRA) is the age at which workers can first claim full Social Security retired-worker benefits. The Social Security retired-worker benefits. The
FRA ranges between 65 and 67, depending on year of birth. Workers can claim Social Security
32 See CRS Report R42035, Social Security Primer, by Barry F. Huston.
33 An estimated 94% of workers worked in paid employment or self-employment covered by Social Security, and their
earnings are subject to the Social Security payroll tax. Employers and employees each pay 6.2% of covered earnings,
up to an annual limit on taxable earnings ($147,000 in 2022). For more information, see SSA, Fact Sheet on the Old-
Age, Survivors, And Disability Insurance Program, July 22, 2022, at https://www.ssa.gov/OACT/FACTS/
fs2022_06.pdf.
34 A worker may earn up to four earnings credits per calendar year. In 2022, a worker earns one credit for each $1,510
of covered earnings, up to a maximum of four credits for covered earnings of $6,040 or more. Fewer earnings credits
are needed to qualify for a disabled-worker benefit; the number needed varies depending on the age of the worker when
he or she became disabled. Earnings credits are also called quarters of coverage.
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FRA ranges between 65 and 67, depending on year of birth. Workers can claim Social Security retired-worker benefits as early as age 62, the early eligibility age (EEA). However, workers who retired-worker benefits as early as age 62, the early eligibility age (EEA). However, workers who
claim benefits before the FRA are generally subject to a permanent reduction in their benefits.claim benefits before the FRA are generally subject to a permanent reduction in their benefits.35
36 Spouses can also claim reduced spousal benefits based on the workerSpouses can also claim reduced spousal benefits based on the worker’'s earnings as early as age s earnings as early as age
62.3662.37 Social Security benefits for a household can include those for retired workers, disabled Social Security benefits for a household can include those for retired workers, disabled
workers,workers,3738 dependent spouses, and survivors. dependent spouses, and survivors.38
39
Social Security benefits generally increase with career-average earnings. This means that low-Social Security benefits generally increase with career-average earnings. This means that low-
paid workers receive relatively lower benefits than high-paid workers. The Social Security benefit paid workers receive relatively lower benefits than high-paid workers. The Social Security benefit
formula, however, is progressive—it is weighted to replace a greater share of career-average formula, however, is progressive—it is weighted to replace a greater share of career-average
earnings for low-paid workers than for high-paid workers, who were expected to be able to save earnings for low-paid workers than for high-paid workers, who were expected to be able to save
more individually than lower-paid workers. Therefore, low-paid workers receive relatively higher more individually than lower-paid workers. Therefore, low-paid workers receive relatively higher
benefits relative to their career-average earnings and payroll tax contributions.benefits relative to their career-average earnings and payroll tax contributions.
In 2017
In 2019, Social Security benefits were the most common source of income among individuals , Social Security benefits were the most common source of income among individuals
agedages 65 and older. Most individuals 65 and older. Most individuals agedages 65 and older received household income from Social 65 and older received household income from Social
Security (Security (92.6%).3991.9%).40 For individuals whose households had Social Security beneficiaries, the For individuals whose households had Social Security beneficiaries, the
median household benefit amount was $median household benefit amount was $22,08024,115. Most aged individuals (about 80%) received . Most aged individuals (about 80%) received
household Social Security benefits between $10,household Social Security benefits between $10,000440 and $ and $40,00041,710; about 10% of aged individuals ; about 10% of aged individuals
received household benefits less than $10,received household benefits less than $10,000440, and about 10% received household benefits , and about 10% received household benefits more
than $40,000.40
in excess of $41,710.41 Pensions and Retirement Savings
Pensions and retirement savings include pension income from employer-sponsored DB and DC Pensions and retirement savings include pension income from employer-sponsored DB and DC
plans, annuities, and withdrawals from IRAs.plans, annuities, and withdrawals from IRAs.41 In 201742 In 2019, about , about 59.858.7% of individuals % of individuals agedages 65 and 65 and
older received household income from pensions and retirement savings, with a median household older received household income from pensions and retirement savings, with a median household
amount of $amount of $18,00019,644 among those with these types of income. Household income from pensions among those with these types of income. Household income from pensions
and retirement savings varied substantially across the aged population. Among aged individuals and retirement savings varied substantially across the aged population. Among aged individuals
who received household income from pensions and retirement savings, about 35% received less who received household income from pensions and retirement savings, about 35% received less
than $10,000, while about 25% received more than $40,000.than $10,000, while about 25% received more than $40,000.42
In 201743
In 2019, the largest component in pensions and retirement savings was income from employer-, the largest component in pensions and retirement savings was income from employer-
sponsored DB and DC pensions. DB plans usually offer a lifetime annuity (i.e., periodic sponsored DB and DC pensions. DB plans usually offer a lifetime annuity (i.e., periodic
payments throughout retirement) that is typically based on a combination of factors, such as an
35 See CRS Report R44670, The Social Security Retirement Age, by Zhe Li.
36 Other types of dependents can claim benefits before the age of 62. Widow(er)’s benefits can be claimed as early as
age 60; disabled widow(er)’s benefits can be claimed as early as age 50. These benefits are also subject to reduction if
claimed before the FRA. There is no minimum eligibility age for dependent child’s benefits. Disability benefits are not
reduced for claiming age relative to the FRA.
37 Upon reaching the FRA, disabled-worker beneficiaries are converted automatically to the Old-Age and Survivors
Insurance program, and begin receiving unreduced Social Security retired-worker benefits.
38 The total amount of Social Security benefits payable to a family based on a retired, disabled, or deceased worker’s
record is capped by the maximum family benefit. Social Security Act, Title II, §203. For more information, see CRS
Report R42035, Social Security Primer, by Barry F. Huston.
39 For discussion of the population not covered by Social Security, see CRS In Focus IF11824, Social Security: Who Is
Covered Under the Program?, by Paul S. Davies.
40 CRS analysis of restricted data from the 2018 HRS. For additional information, see Table A-1.
41 See CRS Report R47119, Pensions and Individual Retirement Accounts (IRAs): An Overview, coordinated by
Elizabeth A. Myers, and CRS Report RS22350, Railroad Retirement Board: Retirement, Survivor, Disability,
Unemployment, and Sickness Benefits, by Zhe Li.
42 CRS analysis of restricted data from the 2018 HRS. For additional information, see Table A-1.
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employee’payments throughout retirement) that is typically based on a combination of factors, such as an employee's tenure, salary, and an accrual rate.s tenure, salary, and an accrual rate.4344 DC plans, such as 401(k) plans, are retirement DC plans, such as 401(k) plans, are retirement
savings accounts generally funded through voluntary pre-tax contributions by the worker, which savings accounts generally funded through voluntary pre-tax contributions by the worker, which
are sometimes partially or fully matched by the employer.are sometimes partially or fully matched by the employer.4445 The employee determines how much The employee determines how much
to invest and how to allocate these funds among the investment options. Retired households can to invest and how to allocate these funds among the investment options. Retired households can
generally withdraw funds out of these accounts as a source of income, but face decisions generally withdraw funds out of these accounts as a source of income, but face decisions
regarding the timing, rate, and form of withdrawal.regarding the timing, rate, and form of withdrawal.45 In 201746 In 2019, about , about 44.943.8% of individuals % of individuals agedages 65 65
and older received household income from DB or DC pensions; the median household amount and older received household income from DB or DC pensions; the median household amount
was $was $16,02017,832 (see (see Table A-1).
.
A relatively small share of aged individuals (7.A relatively small share of aged individuals (7.96%) received household income from non-pension %) received household income from non-pension
annuities in annuities in20172019. Annuities may take different forms.. Annuities may take different forms.4647 Annuities can be used to reduce the Annuities can be used to reduce the
likelihood that people may outlive their resources and to alleviate some post-retirement likelihood that people may outlive their resources and to alleviate some post-retirement
investment risks. Among aged individuals who received household income from non-pension investment risks. Among aged individuals who received household income from non-pension
annuities in annuities in20172019, the median amount was $, the median amount was $8,832 (see10,152 (see Table A-1).
.
Retirement income can also include distributions from IRAs.Retirement income can also include distributions from IRAs.4748 Individuals who have earned Individuals who have earned
income (e.g., wages, salaries, commissions, self-employment income) can establish IRAs to income (e.g., wages, salaries, commissions, self-employment income) can establish IRAs to
accumulate funds for retirement on a tax-advantaged basis.accumulate funds for retirement on a tax-advantaged basis.4849 Though many individuals contribute Though many individuals contribute
directly to an IRA, the majority of IRA funds come from rollovers of DC plan assets.directly to an IRA, the majority of IRA funds come from rollovers of DC plan assets.49 In 2017,
about 29.350 In 2019, about 28.7% of aged individuals received household income from withdrawals from IRA % of aged individuals received household income from withdrawals from IRA
accounts. The median household withdrawal was $8,accounts. The median household withdrawal was $8,167945 among those aged individuals with this among those aged individuals with this
type of income (type of income (seesee Table A-1).
Asset Income
Table A-1).
43 DB pension plans in the private sector are generally funded entirely by employer contributions. In contrast, many
public-sector pension plans require employee contributions.
44 An employee may contribute up to $20,500 ($27,000 if age 50 or older) per year to a 401(k) plan in 2022. The
contribution limit is adjusted annually for increases in the national wage. Some DC plans can be funded solely by
employers. Contributions in Roth 401(k) accounts are after-tax. For more information, see U.S. Department of the
Treasury (Treasury), Internal Revenue Service (IRS), 2022 Limitations Adjusted As Provided in Section 415 (d), etc.,
Notice 2021-61, at https://www.irs.gov/pub/irs-drop/n-21-61.pdf.
45 After reaching a specified age or inheriting an account, individuals with employer-sponsored DC plans and
traditional IRAs generally have to begin taking required minimum distributions (RMDs) from their accounts. Under
current law, the RMD is a minimum amount that must be withdrawn each year after the account holder reaches age 72
(in the case of DC plans, account holders who work past age 72 may start taking RMDs after retirement, though
exceptions apply for account holders who own more than 5% of the business sponsoring the plan). Failure to take the
RMD results in a tax penalty equal to 50% of the amount that should have been distributed.
46 A life annuity—also called an immediate annuity—is an insurance contract that provides guaranteed income
payments for life in return for an initial lump-sum premium. A life annuity pays income to the purchaser for as long as
he or she lives and, in the case of a joint and survivor annuity, for as long as the surviving spouse lives. Another
annuity product, the Advanced Life Deferred Annuity, can be purchased at retirement with a smaller share of
accumulated assets and payments beginning at a later age, such as 85. People can also purchase an inflation-adjusted
annuity that provides annual increases in income.
47 The HRS does not distinguish between traditional IRAs and Roth IRAs in the income sources of respondents and
their spouses (if any).
48 Individuals may contribute up to $6,000 ($7,000 if 50 or older) in 2022 to an IRA. The contribution limit is adjusted
annually for increases in the national wage. For more information, see CRS Report RL34397, Traditional and Roth
Individual Retirement Accounts (IRAs): A Primer, by Elizabeth A. Myers.
49 See Investment Company Institute (ICI), The US Retirement Market, Second Quarter 2022, Tables 11 and 12, at
https://www.ici.org/research/stats/retirement. Rollovers are transfers of assets from one retirement plan to another
retirement plan, often upon separation from an employer. Generally, individuals may roll over account balances from
employer-sponsored pension plans into traditional or Roth IRAs upon separation from employment.
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Asset Income
Asset income includes capital income from business, rent, interest, and dividends. Asset income Asset income includes capital income from business, rent, interest, and dividends. Asset income
is relatively common among individuals is relatively common among individualsagedages 65 and older. In 65 and older. In 20172019, approximately , approximately 54.555.7% of % of
aged individuals received household income from assets; the median household amount was aged individuals received household income from assets; the median household amount was
$1,400$1,332. Most received small amounts of such income. Roughly 25% of aged individuals who had . Most received small amounts of such income. Roughly 25% of aged individuals who had
household income from assets received less than $household income from assets received less than $8072 and nearly 75% received less than and nearly 75% received less than
$14,453.50
$12,600.51 Earnings
Earnings include income from wages and salaries and self-employment. Older individuals Earnings include income from wages and salaries and self-employment. Older individuals
generally leave the labor force or reduce working hours when they age. In generally leave the labor force or reduce working hours when they age. In20172019, about , about 3637.5% of .5% of
individuals individualsagedages 65 and older had household income from earnings. Most of those aged workers 65 and older had household income from earnings. Most of those aged workers
(81(82%) were between ages 65 and 74. Among individuals with workers in their households, the %) were between ages 65 and 74. Among individuals with workers in their households, the
median household earnings amount was $median household earnings amount was $32,00036,500 (the largest median amount for any of the (the largest median amount for any of the
income sources). The household earnings amount was less than $income sources). The household earnings amount was less than $910,000 for one-fourth of aged ,000 for one-fourth of aged
individuals with household earnings, and it was more than $individuals with household earnings, and it was more than $73,70084,000 for another one-fourth of for another one-fourth of
those individuals.those individuals.
A larger share of aged individuals received income from wages and salaries (A larger share of aged individuals received income from wages and salaries (30.631.8%) than from %) than from
self-employment (self-employment (12.613.2%) in %) in 20172019. The median household . The median household income amount from wages and salaries was $wages and salaries was $30,00035,300 among among
aged individuals who received household income from those income sources, compared with aged individuals who received household income from those income sources, compared with
$15,000$18,800 for household self-employment income (see for household self-employment income (see Table A-1).
. Public Assistance
Public assistance includes SSI and other public assistance (e.g., welfare and dollars worth of Public assistance includes SSI and other public assistance (e.g., welfare and dollars worth of
SNAP).SNAP).51 In 2017, 8.152 In 2019, 7.6% of aged individuals received household income from public assistance, % of aged individuals received household income from public assistance,
and their median annual household benefit amount was $and their median annual household benefit amount was $1,7642,160. The household public assistance . The household public assistance
amount was less than $10,000 for most aged individuals.amount was less than $10,000 for most aged individuals.52
53
SSI is a needs-based federal assistance program that provides monthly cash benefits to aged, SSI is a needs-based federal assistance program that provides monthly cash benefits to aged,
blind, and disabled individuals who have income and assets within prescribed program limits. blind, and disabled individuals who have income and assets within prescribed program limits.
The program is intended to provide a guaranteed minimum level of income to adults who have The program is intended to provide a guaranteed minimum level of income to adults who have
difficulty meeting their basic living expenses due to age (65 and older) or disability, and who difficulty meeting their basic living expenses due to age (65 and older) or disability, and who
have little or no Social Security or other income.have little or no Social Security or other income.5354 The proportion of the elderly population The proportion of the elderly population
receiving SSI has steadily fallen since the program began in 1974,receiving SSI has steadily fallen since the program began in 1974,5455 mainly because the mainly because the
percentage of people percentage of peopleagedages 65 and older who received Social Security benefits has increased and 65 and older who received Social Security benefits has increased and
the value of Social Security benefits—which reduces the value of onethe value of Social Security benefits—which reduces the value of one’'s SSI payment on a dollar-s SSI payment on a dollar-
for-dollar basis after a $20 general income exclusion—has risen due to the growth in real wages.
50 CRS analysis of restricted data from the 2018 HRS. For additional information, see Table A-1.
51 In the HRS, the Supplemental Nutrition Assistance Program (SNAP) is referred to as Food Stamps, which was the
old name of the program. See CRS Report R42505, Supplemental Nutrition Assistance Program (SNAP): A Primer on
Eligibility and Benefits, by Randy Alison Aussenberg and Gene Falk.
52 CRS analysis of restricted data from the 2018 HRS. For additional information, see Table A-1.
53 See CRS In Focus IF10482, Supplemental Security Income (SSI), by William R. Morton.
54 In 1975, about 10% of the elderly population in the United States received some form of public assistance from the
federal or state governments, mainly from SSI. CRS analysis of the Current Population Survey (CPS), 1976 Annual
Social and Economic Supplement (ASEC).
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for-dollar basis after a $20 general income exclusion—has risen due to the growth in real wages. The SSI federal benefit rate, in contrast, grows at the annual rate of price inflation.The SSI federal benefit rate, in contrast, grows at the annual rate of price inflation.55 In 2017,
56 In 2019, about 3.about 3.54% of individuals % of individuals agedages 65 and older received SSI benefits in household income; the 65 and older received SSI benefits in household income; the
medianmedian annual benefit amount was $4, benefit amount was $4,680758 among SSI recipients ( among SSI recipients (seesee Table A-1). About . About 8074% of aged % of aged
individuals who received household income from SSI were in the bottom 20% of the household individuals who received household income from SSI were in the bottom 20% of the household
income distribution, and more than half were in poverty.income distribution, and more than half were in poverty.56
57
Roughly Roughly 6.15.7% of aged individuals received household income from SNAP and other welfare % of aged individuals received household income from SNAP and other welfare
programs in programs in20172019; the median household amount was $; the median household amount was $9121,200 (see (see Table A-1).
Other Income
Individuals Individualsagedages 65 and older may also receive household income from veteran benefits, workers 65 and older may also receive household income from veteran benefits, workers’
' compensation, unemployment compensation, alimony, child support, and financial assistance compensation, unemployment compensation, alimony, child support, and financial assistance
from friends or relatives not living in the same household. In from friends or relatives not living in the same household. In20172019, about 16., about 16.98% of aged % of aged
individuals received household income from other sources; the median household amount among individuals received household income from other sources; the median household amount among
those individuals was $those individuals was $15,600.
14,736. Income for Aged Individuals, by Marital Status
In 2018
In 2020 (the survey year), about (the survey year), about 61.462.6% of individuals % of individuals agedages 65 and older were married, 65 and older were married, 2119.6% .6%
were widowed, 12.were widowed, 12.31% were divorced or separated, and % were divorced or separated, and 4.65.4% were never married.% were never married.57
58
In general, aged individuals who were married tend to have a higher median household income In general, aged individuals who were married tend to have a higher median household income
than single individuals (those widowed, divorced or separated, and never married), since a than single individuals (those widowed, divorced or separated, and never married), since a
married individual might have household income from more than one person. In married individual might have household income from more than one person. In20172019, the median , the median
household income for married individuals household income for married individualsagedage 65 or older was $ 65 or older was $70,32975,390, compared with $, compared with $26,080
28,081 for widow(er)s, $for widow(er)s, $26,83628,248 for divorced or separated individuals, and $ for divorced or separated individuals, and $21,21527,340 for never married for never married
individuals (seeindividuals (see Figure 2).
55 In any given year the rate of price inflation may exceed the rate of growth of average wages. Over long periods,
however, wages grow faster than prices because average wages grow at the average rate of inflation plus the rate of
growth of labor productivity. Prices will grow faster than wages in the long run only if labor productivity fails to
increase.
56 Poverty status is determined based on the definition by U.S. Census Bureau. See U.S. Census Bureau, “Poverty
Thresholds,” at https://www.census.gov/data/tables/time-series/demo/income-poverty/historical-poverty-
thresholds.html; and Delia Bugliari, et al., RAND HRS Longitudinal File 2018 (V2) Documentation, RAND, July 2022,
Section “4. Poverty Threshold Definitions and HRS Measures.”
57 Percentages may not add to 100% due to rounding.
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Income for the Population Aged 65 and Older
Figure 2).AgedAges 65 and Older by Marital
Status, 2017
Status, 2019 Source: CRS analysis of data from the CRS analysis of data from the20182020 Health and Retirement Study (HRS). Health and Retirement Study (HRS).
Notes: Married individuals include those married or partnered. Divorced individuals include those divorced and Married individuals include those married or partnered. Divorced individuals include those divorced and
separated. Household income for married and partnered individuals is the sum of income from each spouse separated. Household income for married and partnered individuals is the sum of income from each spouse or partner inin
the household. The sample in this figure includes a small share of individuals the household. The sample in this figure includes a small share of individualsagedages 65 and older (about 0. 65 and older (about 0.23%) who %) who
did not receive household income in did not receive household income in20172019. All values displayed in the figure have been adjusted for population . All values displayed in the figure have been adjusted for population
weights provided by the HRS.weights provided by the HRS.
Figure 3 shows the share of individuals shows the share of individuals agedages 65 and older who received household income from 65 and older who received household income from
each income source, based on their marital status in each income source, based on their marital status in20172019. The receipt of Social Security in . The receipt of Social Security in
household income was generally common among both married individuals and single persons.household income was generally common among both married individuals and single persons.
A larger percentage of married individuals A larger percentage of married individuals agedages 65 and older received household income from 65 and older received household income from
pensions and retirement savings and asset income than single persons. About pensions and retirement savings and asset income than single persons. About65.564.2% of married % of married
individuals received household income from pensions and retirement savings, compared with individuals received household income from pensions and retirement savings, compared with
53.53.94% for widowed individuals, % for widowed individuals, 4645.4% for those divorced or separated, and .4% for those divorced or separated, and 40.645.1% for those % for those
never married. Similarly, around never married. Similarly, around61.062.7% of married individuals % of married individuals agedages 65 and older received asset 65 and older received asset
income in household income, compared with income in household income, compared with4647.9% for widow(er)s, .9% for widow(er)s, 41.438.3% for divorced or % for divorced or
separated individuals, and separated individuals, and38.843.7% for never married individuals.% for never married individuals.
Aged individuals who were married were also more likely to receive household income from Aged individuals who were married were also more likely to receive household income from
earnings than single persons. About 46.earnings than single persons. About 46.41% of married individuals % of married individuals agedages 65 and older received 65 and older received
household income from earnings, compared to household income from earnings, compared to14.115.0% for widow(er)s, % for widow(er)s, 31.234.5% for those divorced % for those divorced
or separated, and or separated, and2426.3% for those never married. Aged widow(er)s were least likely to work, .3% for those never married. Aged widow(er)s were least likely to work,
partly because about half of them were partly because about half of them wereaged 80 andage 80 or older and had left the labor force. older and had left the labor force.
In contrast, a larger percentage of single persons received household income from SSI or other In contrast, a larger percentage of single persons received household income from SSI or other
public assistance than married individuals. About public assistance than married individuals. About19.417.9% of never married individuals % of never married individuals agedages 65 and 65 and
older received household income from public assistance, compared with older received household income from public assistance, compared with16.615.2% for those divorced % for those divorced
or separated, 10.or separated, 10.56% for widow(er)s, and 4.% for widow(er)s, and 4.62% for those married.% for those married.
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Income for the Population Aged 65 and Older
AgedAges 65 and Older That Received Household Income
from Each Income Source by Marital Status, 2017
2019 Source: CRS analysis of data from the CRS analysis of data from the20182020 Health and Retirement Study (HRS). Health and Retirement Study (HRS).
Notes: Married individuals include those married or partnered. Divorced individuals include those divorced and Married individuals include those married or partnered. Divorced individuals include those divorced and
separated. Pensions and retirement savings include pension income from employer-sponsored defined benefit separated. Pensions and retirement savings include pension income from employer-sponsored defined benefit
and defined contribution plans, annuities, and withdrawals from Individual Retirement Accountsand defined contribution plans, annuities, and withdrawals from Individual Retirement Accounts (IRAs). Asset . Asset
income includes business income, interest, dividends, and rents. Other income includes veteran benefits, income includes business income, interest, dividends, and rents. Other income includes veteran benefits,
workers’workers' compensation, unemployment compensation, alimony, child support, and financial assistance from compensation, unemployment compensation, alimony, child support, and financial assistance from
friends or relatives not living in the same household. Public assistance includes friends or relatives not living in the same household. Public assistance includesSSI benefits, dol arsSupplemental Security Income benefits, dollars worth of Supplemental Nutrition Assistance Program worth of
SNAP benefits, and other welfare income. All values displayed in the table have been adjusted for population benefits, and other welfare income. All values displayed in the table have been adjusted for population
weights provided by the HRS.weights provided by the HRS.
Figure 4 displays the share of aggregate income from each income source for individuals displays the share of aggregate income from each income source for individuals agedages 65 65
and older by marital status in and older by marital status in20172019. Social Security benefits accounted for a larger proportion of . Social Security benefits accounted for a larger proportion of
total income for aged single persons than for married individuals. Social Security benefits total income for aged single persons than for married individuals. Social Security benefits
accounted for accounted for37.638.8% of total income for widow(er)s, % of total income for widow(er)s, 31.532.1% for divorced or separated individuals, % for divorced or separated individuals,
and and31.932.2% for never married individuals, compared with % for never married individuals, compared with 24.826.5% for married individuals. The % for married individuals. The
proportions of total income from pensions and retirement savings, asset income, and public proportions of total income from pensions and retirement savings, asset income, and public
assistance were also higher for aged single persons than for married individuals, respectively.assistance were also higher for aged single persons than for married individuals, respectively.
Differently, earnings accounted for a larger proportion of total income for aged individuals who Differently, earnings accounted for a larger proportion of total income for aged individuals who
were married than for aged single persons. This is partly because married individuals were more were married than for aged single persons. This is partly because married individuals were more
likely to receive household income from earnings and the median earnings were usually higher likely to receive household income from earnings and the median earnings were usually higher
than the median of other income sources.than the median of other income sources.
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Income for the Population Aged 65 and Older
AgedAges 65 and Older by Marital Status, 2017
2019 Source: CRS analysis of data from the CRS analysis of data from the20182020 Health and Retirement Study (HRS). Health and Retirement Study (HRS).
Notes: Married individuals include those married or partnered. Divorced individuals include those divorced and Married individuals include those married or partnered. Divorced individuals include those divorced and
separated. Pensions and retirement savings include pension income from employer-sponsored defined benefit separated. Pensions and retirement savings include pension income from employer-sponsored defined benefit
and defined contribution plans, annuities, and withdrawals from Individual Retirement Accountsand defined contribution plans, annuities, and withdrawals from Individual Retirement Accounts (IRAs). Asset . Asset
income includes business income, interest, dividends, and rents. Other income includes veteran benefits, income includes business income, interest, dividends, and rents. Other income includes veteran benefits,
workers’workers' compensation, unemployment compensation, alimony, child support, and financial assistance from compensation, unemployment compensation, alimony, child support, and financial assistance from
friends or relatives not living in the same household. Public assistance includes friends or relatives not living in the same household. Public assistance includesSSI benefits, dol arsSupplemental Security Income benefits, dollars worth of Supplemental Nutrition Assistance Program worth of
SNAP benefits, and other welfare income. All values displayed in the table have been adjusted for population benefits, and other welfare income. All values displayed in the table have been adjusted for population
weights provided by the HRS. Individual components may not sum to 100% due to rounding.weights provided by the HRS. Individual components may not sum to 100% due to rounding.
Income for Aged Individuals, by Household Income
Quintiles
Quintiles The sources of income received by individuals 65 and older whose household incomes are at the The sources of income received by individuals 65 and older whose household incomes are at the
lower end of the household income distribution differ from the sources of income of people at the lower end of the household income distribution differ from the sources of income of people at the
upper end of the household income upper end of the household incomedistributiondistribution. Figure 5 shows the share of aged individuals shows the share of aged individuals
who received household income from different income sources by household income quintile in who received household income from different income sources by household income quintile in
20172019. Each quintile represents 20% of the aged population. The first quintile depicts the 20% of . Each quintile represents 20% of the aged population. The first quintile depicts the 20% of
aged individuals with the least household income, and the fifth quintile depicts the 20% of aged aged individuals with the least household income, and the fifth quintile depicts the 20% of aged
individuals with the most household income. In individuals with the most household income. In20172019, receipt of Social Security in household , receipt of Social Security in household
income was generally common among aged individuals throughout the household income income was generally common among aged individuals throughout the household income
distribution, while receipt of other income sources generally distribution, while receipt of other income sources generallydiffersdiffered across the household income across the household income
distribution.distribution.
A smaller percentage of aged individuals with relatively lower household income received A smaller percentage of aged individuals with relatively lower household income received
pensions and retirement savings in pensions and retirement savings in20172019 compared with those with higher household income. compared with those with higher household income.
About About19.318.9% of aged individuals in the bottom household income quintile received household % of aged individuals in the bottom household income quintile received household
income from pensions and retirement savings, compared to income from pensions and retirement savings, compared to55.253.7% of those in the % of those in the 2nd2nd household household
income quintile, and income quintile, androughly three-quartersmore than 69% of those in each of the top three household income of those in each of the top three household income
quintiles quintiles (Figure 5). The finding that aged individuals with lower household income were less . The finding that aged individuals with lower household income were less
likely to receive income from pensions and retirement savings might be due to lower labor force likely to receive income from pensions and retirement savings might be due to lower labor force
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Income for the Population Aged 65 and Older
participation during their working years, less income available for savings, or lower access to participation during their working years, less income available for savings, or lower access to
pension plans.pension plans.
Earnings were also less prevalent among aged individuals with relatively lower household income Earnings were also less prevalent among aged individuals with relatively lower household income
in 2017in 2019. About . About 910.5% of aged individuals in the bottom household income quintile received .5% of aged individuals in the bottom household income quintile received
household income from earnings, compared with almost household income from earnings, compared with almost67.2% among68.8% of those in the top household those in the top household
income quintile income quintile (Figure 5). This is partly because aged individuals with the most household . This is partly because aged individuals with the most household
income were relatively younger and still remained in the labor force. Approximately 74income were relatively younger and still remained in the labor force. Approximately 74.2% of aged % of aged
individuals in the top household income quintile were individuals in the top household income quintile wereagedages 74 and younger, compared with 49 74 and younger, compared with 49.7% %
of those in the bottom household income quintile.of those in the bottom household income quintile.
In addition
In addition, Figure 5 shows that aged individuals at the lower end of the household income shows that aged individuals at the lower end of the household income
distribution were also less likely to receive household income from assets and other sources. For distribution were also less likely to receive household income from assets and other sources. For
example, in example, in20172019, nearly , nearly 18.920.6% of aged individuals in the bottom household income quintile % of aged individuals in the bottom household income quintile
received household income from assets, compared with about 82.received household income from assets, compared with about 82.25% among those in the top % among those in the top
household income quintile. About household income quintile. About3.84.1% of aged individuals in the bottom quintile of the % of aged individuals in the bottom quintile of the
household income distribution received some other income, compared with more than household income distribution received some other income, compared with more than28.2%
26.5% among those in the top household income quintile.among those in the top household income quintile.
Differently, aged individuals who were in the bottom household income quintile were more likely Differently, aged individuals who were in the bottom household income quintile were more likely
to receive household income from public assistance. Into receive household income from public assistance. In 2017 2019, Figure 5 shows that about shows that about 29.026.2% of % of
aged individuals in the bottom quintile of the household income distribution received SSI or other aged individuals in the bottom quintile of the household income distribution received SSI or other
public assistance, compared with less than 6% for aged individuals with higher household public assistance, compared with less than 6% for aged individuals with higher household
income.income.
For the percentage of aged individuals who received household income from detailed income For the percentage of aged individuals who received household income from detailed income
sources by household income quintile and marital status, sources by household income quintile and marital status,seesee Table A-2.
AgedAges 65 and Older That Received Household Income
from Selected Source by Household Income Quintile, 2017
2019 Source: CRS analysis of data from the CRS analysis of data from the20182020 Health and Retirement Study (HRS). Health and Retirement Study (HRS).
Notes: Pensions and retirement savings include pension income from employer-sponsored defined benefit and Pensions and retirement savings include pension income from employer-sponsored defined benefit and
defined contribution plans, annuities, and withdrawals from Individual Retirement Accountsdefined contribution plans, annuities, and withdrawals from Individual Retirement Accounts (IRAs). Asset income . Asset income
includes business income, interest, dividends, and rents. Other income includes veteran benefits, workersincludes business income, interest, dividends, and rents. Other income includes veteran benefits, workers’
' compensation, unemployment compensation, alimony, child support, and financial assistance from friends or compensation, unemployment compensation, alimony, child support, and financial assistance from friends or
relatives not living in the same household. Public assistance includes relatives not living in the same household. Public assistance includesSSI, dol ars worth of SNAPSupplemental Security Income, dollars worth of Supplemental Nutrition Assistance Program benefits, and benefits, and
other welfare income. Household income quintile other welfare income. Household income quintilebrackets are $21,840, $39,700, $64,295, and $110,897. All
upper bounds are $24,132, $43,252, $68,480, and $116,252, and the fifth quintile has a lower bound of $116,253 and includes incomes up to the highest value in the data set. All values displayed in the table have been adjusted for population weights provided by the HRS. For information on values displayed in the table have been adjusted for population weights provided by the HRS. For information on
detailed income sources, detailed income sources,seesee Table A-2.
Figure 6 displays the share of aggregate income among aged individuals from each income displays the share of aggregate income among aged individuals from each income
source by household income quintile in source by household income quintile in20172019. Social Security was the predominant income source . Social Security was the predominant income source
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Income for the Population Aged 65 and Older
for aged individuals with relatively lower household income. For example, Social Security for aged individuals with relatively lower household income. For example, Social Security
provided provided83.282.6% of all income received in % of all income received in 20172019 for those in the bottom household income for those in the bottom household income
quintile, and quintile, and66.463.5% for those in the % for those in the 2ndsecond household income quintile. The share of aggregate income household income quintile. The share of aggregate income
from Social Security significantly decreased as household income increased. Social Security paid from Social Security significantly decreased as household income increased. Social Security paid
11.412.0% of all income received for aged individuals in the top household income quintile.% of all income received for aged individuals in the top household income quintile.
Except for those with the least household income, who received 5.Except for those with the least household income, who received 5.56% of aggregate income from % of aggregate income from
this source, in this source, in20172019, pensions and retirement savings provided between 18% and , pensions and retirement savings provided between 18% and 3332% of % of
aggregate income for aged individuals aggregate income for aged individuals (Figure 6). This income source accounted for about 30% . This income source accounted for about 30%
of aggregate income for those in the of aggregate income for those in the3rd and 4th3rd and 4th household income quintile, and household income quintile, and slightly moreless than than
25% for those with the most household income. Aged individuals in the top household income 25% for those with the most household income. Aged individuals in the top household income
quintile received a relatively smaller percentage of aggregate income from pensions and quintile received a relatively smaller percentage of aggregate income from pensions and
retirement savings partly because they also received more than half of aggregate income from retirement savings partly because they also received more than half of aggregate income from
asset income and earnings. Aged individuals in the bottom household income quintile received a asset income and earnings. Aged individuals in the bottom household income quintile received a
smaller percentage of aggregate income from pensions and retirement savings mainly because a smaller percentage of aggregate income from pensions and retirement savings mainly because a
smaller percentage of those individuals received household income from those sources.smaller percentage of those individuals received household income from those sources.
Differently, asset income and earnings accounted for a substantially larger share of total income Differently, asset income and earnings accounted for a substantially larger share of total income
for individuals for individualsagedages 65 and older who had higher household income than those with lower 65 and older who had higher household income than those with lower
household income. For household income. Forexampleexample, Figure 6 shows that asset income accounted for shows that asset income accounted for 1917.6% of total .6% of total
income for aged individuals in the top household income quintile, compared with 1.income for aged individuals in the top household income quintile, compared with 1.62% for those % for those
in the bottom household income quintile; earnings accounted for in the bottom household income quintile; earnings accounted for32.638.9% of total income received % of total income received
by aged individuals in the top household income quintile, compared with by aged individuals in the top household income quintile, compared with2.93.8% for those in the % for those in the
bottom household income quintile.bottom household income quintile.
Public assistance accounted for a small percentage of aggregate income for most aged Public assistance accounted for a small percentage of aggregate income for most aged
individuals, although it was somewhat more important for aged individuals in the bottom individuals, although it was somewhat more important for aged individuals in the bottom
household income quintile, accounting for 5.household income quintile, accounting for 5.96% of aggregate income % of aggregate income (Figure 6).
For the share of aggregate income from detailed income sources by household income quintile For the share of aggregate income from detailed income sources by household income quintile
and marital status, seeand marital status, see Table A-3.
AgedAges 65 65
and Older by Household Income Quintile, 2017
2019 Source: CRS analysis of data from the CRS analysis of data from the20182020 Health and Retirement Study (HRS). Health and Retirement Study (HRS).
Notes: Pensions and retirement savings include pension income from employer-sponsored defined benefit and Pensions and retirement savings include pension income from employer-sponsored defined benefit and
defined contribution plans, annuities, and withdrawals from Individual Retirement Accountsdefined contribution plans, annuities, and withdrawals from Individual Retirement Accounts (IRAs). Asset income . Asset income
includes business income, interest, dividends, and rents. Other income includes veteran benefits, workersincludes business income, interest, dividends, and rents. Other income includes veteran benefits, workers’
' compensation, unemployment compensation, alimony, child support, and financial assistance from friends or compensation, unemployment compensation, alimony, child support, and financial assistance from friends or
relatives not living in the same household. Public assistance includes relatives not living in the same household. Public assistance includesSSI, dol ars worth of SNAPSupplemental Security Income, dollars worth of Supplemental Nutrition Assistance Program benefits, and benefits, and
other welfare income. Household income quintile other welfare income. Household income quintilebrackets are $21,840, $39,700, $64,295, and $110,897. All
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Income for the Population Aged 65 and Older
upper bounds are $24,132, $43,252, $68,480, and $116,252, and the fifth quintile has a lower bound of $116,253 and includes incomes up to the highest value in the data set. All values displayed in the table have been adjusted for population weights provided by the HRS. Individual values displayed in the table have been adjusted for population weights provided by the HRS. Individual
components may not sum to 100% due to rounding. For information on detailed income sources, components may not sum to 100% due to rounding. For information on detailed income sources,seesee Table A-
3.
Income for Aged Individuals, by Race/Ethnicity
In 2018, 79.5
In 2020, 78.7% of aged individuals identified as non-Hispanic White, 9.3% identified as non-% of aged individuals identified as non-Hispanic White, 9.3% identified as non-
Hispanic Black, Hispanic Black,8.49.0% identified as Hispanic of any race, and % identified as Hispanic of any race, and 2.83.1% identified as non-Hispanic of % identified as non-Hispanic of
other races.other races.5859 Figure 7 shows the median household income in shows the median household income in 20172019 for individuals for individuals agedages 65 and 65 and
older by race/ethnicity. Median household income in older by race/ethnicity. Median household income in20172019 was highest among aged individuals was highest among aged individuals
who identified as non-Hispanic White ($who identified as non-Hispanic White ($57,94062,245) and lowest among aged individuals who ) and lowest among aged individuals who
identified as Hispanic ($identified as Hispanic ($21,480).
24,960).AgedAges 65 and Older by
Race/Ethnicity, 2017
2019 Source: CRS analysis of data from the CRS analysis of data from the20182020 Health and Retirement Study (HRS). Health and Retirement Study (HRS).
Notes: Respondents in the White, Black and Other groups are non-Hispanic. Household income for married Respondents in the White, Black and Other groups are non-Hispanic. Household income for married
and partnered individuals is the sum of income from each spouse in the household. All values displayed in the and partnered individuals is the sum of income from each spouse in the household. All values displayed in the
table have been adjusted for population weights provided by the HRS.table have been adjusted for population weights provided by the HRS.
Figure 8 shows the sources of household income in shows the sources of household income in 20172019 for individuals for individuals agedages 65 and older by 65 and older by
race/ethnicity. Social Security income was the most common source across all racial and ethnic race/ethnicity. Social Security income was the most common source across all racial and ethnic
groups. Receipt of Social Security income in groups. Receipt of Social Security income in2017 was highest among those who identified as
non-Hispanic White (93.2%) and lowest among those who identified as Hispanic (89.1%).
2019 ranged between 88.3% and 92.5% across different race/ethnicity groups.
Pensions and retirement savings and asset income were the next most common income sources in Pensions and retirement savings and asset income were the next most common income sources in
20172019 among individuals among individuals agedage 65 or older. While about two-thirds ( 65 or older. While about two-thirds (66.165.0%) of those who identified %) of those who identified
as non-Hispanic White had income from pensions and retirement savings and as non-Hispanic White had income from pensions and retirement savings and62.364.0% had asset % had asset
income, the respective percentages for those who identified as Hispanic were 28.income, the respective percentages for those who identified as Hispanic were 28.71% and 17.% and 17.2%
6% (Figure 8). Slightly more than one-third (. Slightly more than one-third (37.638.3%) of those who identified as non-Hispanic Black %) of those who identified as non-Hispanic Black
had income from pensions and retirement savings in had income from pensions and retirement savings in2017 and less than 2019 and one-quarter (one-quarter (23.925.0%) had %) had
asset income.
58 In the HRS, other races include those who identified as American Indian, Alaskan Native, Asian, Native Hawaiian,
Pacific Islander, and something else.
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Income for the Population Aged 65 and Older
Between 27.6% and 38.2asset income.
Between 32.2% and 38.6% of aged individuals had earnings in % of aged individuals had earnings in 20172019, with earnings being most , with earnings being most
common among those who identified as non-Hispanic White and non-Hispanic of other races, and common among those who identified as non-Hispanic White and non-Hispanic of other races, and
least common among those who identified as Hispanic least common among those who identified as Hispanic (Figure 8).
.
Although receipt of public assistance in Although receipt of public assistance in 20172019 among individuals among individuals agedages 65 and older was less 65 and older was less
common (common (8.17.6%, see%, see Table 2) than receipt of other income sources, the overall rate of receipt was than receipt of other income sources, the overall rate of receipt was
depressed by low receipt among those who identified as non-Hispanic White. Nearly one-depressed by low receipt among those who identified as non-Hispanic White. Nearly one-quarter
(23.9fifth (19.5%) of those who identified as Hispanic received public assistance. %) of those who identified as Hispanic received public assistance. Close to one-fifth
(17.5%)About 18.5% of those who identified as non-Hispanic Black received public assistance income of those who identified as non-Hispanic Black received public assistance income
(Figure 8).
.
Up to roughly one-fifth of aged individuals received income from other sources in Up to roughly one-fifth of aged individuals received income from other sources in 2017,
2019, including veteransincluding veterans' benefits, unemployment insurance, and workers compensation. Receipt of benefits, unemployment insurance, and workers compensation. Receipt of
other income was substantially less common among those who identified as Hispanic and non-other income was substantially less common among those who identified as Hispanic and non-
Hispanic Black compared with those who identified as non-Hispanic White and non-Hispanic of Hispanic Black compared with those who identified as non-Hispanic White and non-Hispanic of
other races.other races.
For the percentage of aged individuals who received household income from detailed income For the percentage of aged individuals who received household income from detailed income
sources by race and ethnicity and marital status, sources by race and ethnicity and marital status,seesee Table A-4.
AgedAges 65 and Older That Received Household Income
from Each Income Source by Race/Ethnicity, 2017
2019 Source: CRS analysis of data from the CRS analysis of data from the20182020 Health and Retirement Study (HRS). Health and Retirement Study (HRS).
Notes: Respondents in the White, Black and Other groups are non-Hispanic. Pensions and retirement savings Respondents in the White, Black and Other groups are non-Hispanic. Pensions and retirement savings
include pension income from employer-sponsored defined benefit and defined contribution plans, annuities, and include pension income from employer-sponsored defined benefit and defined contribution plans, annuities, and
withdrawals from Individual Retirement Accountswithdrawals from Individual Retirement Accounts (IRAs). Asset income includes business income, interest, . Asset income includes business income, interest,
dividends, and rents. Other income includes veteran benefits, workersdividends, and rents. Other income includes veteran benefits, workers’' compensation, unemployment compensation, unemployment
compensation, alimony, child support, and financial assistance from friends or relatives not living in the same compensation, alimony, child support, and financial assistance from friends or relatives not living in the same
household. Public assistance includes household. Public assistance includesSSI, dol ars worth of SNAPSupplemental Security Income, dollars worth of Supplemental Nutrition Assistance Program benefits, and other welfare income. All values benefits, and other welfare income. All values
displayed in the table have been adjusted for population weights provided by the HRS. For information on displayed in the table have been adjusted for population weights provided by the HRS. For information on
detailed income sources, detailed income sources,seesee Table A-4.
Figure 9 shows the share of aggregate income in shows the share of aggregate income in 20172019 from each source among individuals from each source among individuals aged
ages 65 and older by race and ethnicity. Following the patterns of receipt described above, Social 65 and older by race and ethnicity. Following the patterns of receipt described above, Social
Security income accounted for the largest share of aggregate income in Security income accounted for the largest share of aggregate income in20172019 across most race and across most race and
ethnicity groups among aged individuals. Particularly among those who identified as Hispanic ethnicity groups among aged individuals. Particularly among those who identified as Hispanic
and those who identified as non-Hispanic Black, Social Security accounted for a large proportion and those who identified as non-Hispanic Black, Social Security accounted for a large proportion
of household income in of household income in2017 (43.6% and 39.02019 (44.0% and 40.5%, respectively).%, respectively).
Figure 9 shows that, taken together, pensions and retirement savings and asset income accounted shows that, taken together, pensions and retirement savings and asset income accounted
for between for between2018% and % and 3024% of aggregate household income in % of aggregate household income in 20172019 for aged individuals who for aged individuals who
identified as Hispanic or non-Hispanic Black. In contrast, pensions and retirement savings and identified as Hispanic or non-Hispanic Black. In contrast, pensions and retirement savings and
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Income for the Population Aged 65 and Older
asset income accounted for 40% or moreasset income accounted for more than 34% of aggregate household income in of aggregate household income in 20172019 for those who for those who
identified as non-Hispanic White and non-Hispanic of other races.identified as non-Hispanic White and non-Hispanic of other races.
Earnings accounted for Earnings accounted for 20%-2525%-30% of aggregate household income in % of aggregate household income in 20172019 across race and across race and
ethnicity groups in 2017 ethnicity groups in 2017 (Figure 9).
Public assistance and other income sources accounted for comparatively smaller shares of Public assistance and other income sources accounted for comparatively smaller shares of
household income in household income in20172019. Despite the relatively larger proportions of those who identified as . Despite the relatively larger proportions of those who identified as
Hispanic and non-Hispanic Black who received public assistance in Hispanic and non-Hispanic Black who received public assistance in2017 2019 (Figure 8), income , income
from public assistance programs accounted for a relatively small share of aggregate household from public assistance programs accounted for a relatively small share of aggregate household
income in income in20172019 (less than 3%, (less than 3%, Figure 9).
.
For the share of aggregate income from detailed income sources by race and ethnicity and marital For the share of aggregate income from detailed income sources by race and ethnicity and marital
status, seestatus, see Table A-5.
AgedAges 65 and Older by Race/Ethnicity, 2017
2019
Source: CRS analysis of data from the CRS analysis of data from the 20182020 Health and Retirement Study (HRS). Health and Retirement Study (HRS).
Notes: Respondents in the White, Black and Other groups are non-Hispanic. Pensions and retirement savings Respondents in the White, Black and Other groups are non-Hispanic. Pensions and retirement savings
include pension income from employer-sponsored defined benefit and defined contribution plans, annuities, and include pension income from employer-sponsored defined benefit and defined contribution plans, annuities, and
withdrawals from Individual Retirement Accountswithdrawals from Individual Retirement Accounts (IRAs). Asset income includes business income, interest, . Asset income includes business income, interest,
dividends, and rents. Other income includes veteran benefits, workersdividends, and rents. Other income includes veteran benefits, workers’' compensation, unemployment compensation, unemployment
compensation, alimony, child support, and financial assistance from friends or relatives not living in the same compensation, alimony, child support, and financial assistance from friends or relatives not living in the same
household. Public assistance includes household. Public assistance includesSSI, dol ars worth of SNAPSupplemental Security Income, dollars worth of Supplemental Nutrition Assistance Program benefits, and other welfare income. All values benefits, and other welfare income. All values
displayed in the table have been adjusted for population weights provided by the HRS. Individual components displayed in the table have been adjusted for population weights provided by the HRS. Individual components
may not sum to 100% due to rounding. For information on detailed income sources, may not sum to 100% due to rounding. For information on detailed income sources,seesee Table A-5.
Income for Aged Individuals, by Age Groups
In 2018
In 2020, about , about 33.232.1% of aged individuals were 65-69 years old, % of aged individuals were 65-69 years old, 25.927.1% were % were agedages 70-74, 70-74, 17.4%
were aged18.2% were ages 75-79, and 75-79, and 23.522.6% were % were aged 80 andage 80 or older. Median household income in older. Median household income in 20172019 declined declined
with age, from $with age, from $64,42066,564 among those among those agedages 65-69 to $ 65-69 to $33,86438,277 among those among those agedages 80 and older 80 and older
(Figure 10).
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Income for the Population Aged 65 and Older
(Figure 10).AgedAges 65 and Older by Age
Group, 2017
Group, 2019 Source: CRS Analysis of data from the CRS Analysis of data from the20182020 Health and Retirement Study (HRS). Health and Retirement Study (HRS).
Notes: Household income for married individuals is the sum of income from each spouse in the household. All Household income for married individuals is the sum of income from each spouse in the household. All
values displayed in the table have been adjusted for population weights provided by the HRS.values displayed in the table have been adjusted for population weights provided by the HRS.
Figure 11 shows the share of individuals shows the share of individuals agedages 65 and older who received household income in 65 and older who received household income in
20172019 from each income source by age group. Across all age groups, Social Security was the most from each income source by age group. Across all age groups, Social Security was the most
common income source in common income source in20172019. Among all individuals, between . Among all individuals, between 8379% and 98% received % and 98% received
household income from Social Security in household income from Social Security in20172019. The lowest percentage occurred for the 65-69 . The lowest percentage occurred for the 65-69
age group. Some individuals in this age group may have been transitioning from the labor force to age group. Some individuals in this age group may have been transitioning from the labor force to
retirement, and may not yet have applied for Social Security benefits due to the increase in the retirement, and may not yet have applied for Social Security benefits due to the increase in the
FRA, as evidenced by the large proportion with earnings (FRA, as evidenced by the large proportion with earnings (5961.6%). Aged individuals with short %). Aged individuals with short
working histories may not qualify for Social Security and may qualify for SSI or other public working histories may not qualify for Social Security and may qualify for SSI or other public
assistance.assistance.
Pensions and retirement savings and asset income were the next most common income sources in Pensions and retirement savings and asset income were the next most common income sources in
20172019. There was little variation across the older age groups in the percentage who received these . There was little variation across the older age groups in the percentage who received these
income sources income sources (Figure 11). However, a somewhat smaller proportion of the youngest age group . However, a somewhat smaller proportion of the youngest age group
(ages 65-69) received income from pensions, retirement savings, and assets in (ages 65-69) received income from pensions, retirement savings, and assets in20172019, again in part , again in part
because a larger proportion were still working. The percentage of older individuals with because a larger proportion were still working. The percentage of older individuals with
household income from earnings in household income from earnings in20172019 declined rapidly with age, from declined rapidly with age, from 5961.6% of those % of those agedages 65- 65-
69 to 10.69 to 10.36% of those % of those agedage 80 or older. 80 or older.
Between Between 76% and 9% of individuals % and 9% of individuals agedages 65 and older received household income from public 65 and older received household income from public
assistance programs in assistance programs in20172019, with relatively little variation across age , with relatively little variation across age groupsgroups (Figure 11).
Finally. Finally, Figure 11 shows that roughly 14% to shows that roughly 14% to 1920% of all individuals received household income % of all individuals received household income
from other sources in from other sources in20172019, such as veterans, such as veterans' benefits, unemployment insurance, and workers benefits, unemployment insurance, and workers
compensation. Such income, which to some extent may be tied to recent former employment, was compensation. Such income, which to some extent may be tied to recent former employment, was
received less frequently among individuals received less frequently among individualsagedages 75-79 and 80 and older.
75-79 and 80 and older.
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Income for the Population Aged 65 and Older
Figure 11. Share of IndividualsAgedAges 65 and Older That Received Household Income
from Each Income Source by Age Group, 2017
2019 Source: CRS analysis of data from the CRS analysis of data from the20182020 Health and Retirement Study (HRS). Health and Retirement Study (HRS).
Notes: Pensions and retirement savings include pension income from employer-sponsored defined benefit and Pensions and retirement savings include pension income from employer-sponsored defined benefit and
defined contribution plans, annuities, and withdrawals from Individual Retirement Accountsdefined contribution plans, annuities, and withdrawals from Individual Retirement Accounts (IRAs). Asset income . Asset income
includes business income, interest, dividends, and rents. Other income includes veteran benefits, workersincludes business income, interest, dividends, and rents. Other income includes veteran benefits, workers’
' compensation, unemployment compensation, alimony, child support, and financial assistance from friends or compensation, unemployment compensation, alimony, child support, and financial assistance from friends or
relatives not living in the same household. Public assistance includes relatives not living in the same household. Public assistance includesSSI, dol ars worth of SNAPSupplemental Security Income, dollars worth of Supplemental Nutrition Assistance Program benefits, and benefits, and
other welfare income. All values displayed in the table have been adjusted for population weights provided by the other welfare income. All values displayed in the table have been adjusted for population weights provided by the
HRS.HRS.
Figure 12 shows the share of aggregate income in shows the share of aggregate income in 20172019 from each source among individuals from each source among individuals
agedages 65 and older by age group. A larger share of aggregate income in 65 and older by age group. A larger share of aggregate income in 20172019 for individuals for individuals aged
ages 65-69 came from earnings, whereas the older age groups received larger shares of aggregate 65-69 came from earnings, whereas the older age groups received larger shares of aggregate
income from retirement sources such as Social Security, pensions and retirement savings, and income from retirement sources such as Social Security, pensions and retirement savings, and
asset income. For individuals asset income. For individualsagedages 65-69, roughly one-fifth ( 65-69, roughly one-fifth (20.519.1%) of aggregate income in %) of aggregate income in 2017
2019 was from Social Security, nearly one-was from Social Security, nearly one-fifth (17.5sixth (16.4%) was from pensions and retirement savings, just %) was from pensions and retirement savings, just
overunder one-tenth ( one-tenth (11.58.8%) was from asset income, and about %) was from asset income, and about two-fifths (41.7half (49.0%) was from earnings. %) was from earnings.
Conversely, for individuals Conversely, for individualsagedages 80 and older, over one-third ( 80 and older, over one-third (35.440.0%) of aggregate income in %) of aggregate income in
20172019 was from Social Security, was from Social Security, slightly less than one-third (29.2over one-quarter (28.6%) was from pensions and %) was from pensions and
retirement savings, retirement savings, about one-fifth (19one-quarter (24.5%) was from asset income, and .5%) was from asset income, and 4.35.4% was from earnings. For % was from earnings. For
all age groups, the share of aggregate income from public assistance programs in all age groups, the share of aggregate income from public assistance programs in20172019 was small was small
(generally (less than 1%).less than 1%).
AgedAges 65 and Older by Age Group, 2017
2019 Source: CRS analysis of data from the CRS analysis of data from the20182020 Health and Retirement Study (HRS). Health and Retirement Study (HRS).
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Notes: Pensions and retirement savings include pension income from employer-sponsored defined benefit and Pensions and retirement savings include pension income from employer-sponsored defined benefit and
defined contribution plans, annuities, and withdrawals from Individual Retirement Accountsdefined contribution plans, annuities, and withdrawals from Individual Retirement Accounts (IRAs). Asset income . Asset income
includes business income, interest, dividends, and rents. Other income includes veteran benefits, workersincludes business income, interest, dividends, and rents. Other income includes veteran benefits, workers’
' compensation, unemployment compensation, alimony, child support, and financial assistance from friends or compensation, unemployment compensation, alimony, child support, and financial assistance from friends or
relatives not living in the same household. Public assistance includes relatives not living in the same household. Public assistance includesSSI, dol ars worth of SNAPSupplemental Security Income, dollars worth of Supplemental Nutrition Assistance Program benefits, and benefits, and
other welfare income. All values displayed in the table have been adjusted for population weights provided by the other welfare income. All values displayed in the table have been adjusted for population weights provided by the
HRS. Individual components may not sum to 100% due to rounding.HRS. Individual components may not sum to 100% due to rounding.
Income Dependency on Social Security Benefits
As noted previously, Social Security was the most common source of income and also the largest As noted previously, Social Security was the most common source of income and also the largest
source of income among the population source of income among the populationagedages 65 and older in 65 and older in 20172019. Social Security income was . Social Security income was
particularly important for older individuals (particularly important for older individuals (agedages 75 and older), aged individuals with lower 75 and older), aged individuals with lower
household income, and aged individuals who identify as Hispanic and non-Hispanic Black. household income, and aged individuals who identify as Hispanic and non-Hispanic Black.
Figure 13 measures reliance on Social Security income in measures reliance on Social Security income in20172019 among individuals among individuals agedages 65 and 65 and
older, presenting the proportion of individuals in aged households with Social Security income older, presenting the proportion of individuals in aged households with Social Security income
that received 50% or more, 75% or more, and 90% or more of household income from Social that received 50% or more, 75% or more, and 90% or more of household income from Social
Security. The figures are disaggregated by age group, educational attainment, household income Security. The figures are disaggregated by age group, educational attainment, household income
quintile, marital status, poverty status, race/ethnicity, and gender.quintile, marital status, poverty status, race/ethnicity, and gender.59
60
Among aged individuals who received household income from Social Security in Among aged individuals who received household income from Social Security in 2017, nearly
half (48.92019, about half (49.5%) received more than 50% their household income from Social Security, and %) received more than 50% their household income from Social Security, and about
nearly one-fifth (one-fifth (19.318.7%) received more than 90% of their household income from Social Security %) received more than 90% of their household income from Social Security
(Figure 13). Other studies using survey data from the Current Population Survey linked with SSA . Other studies using survey data from the Current Population Survey linked with SSA
administrative records and Internal Revenue Service tax records found that 12%-14% of administrative records and Internal Revenue Service tax records found that 12%-14% of
individuals individualsagedage 65 or older received 90% or more of household income from Social Security in 65 or older received 90% or more of household income from Social Security in
2015 and 2012.2015 and 2012.60
61 Figure 13 shows that reliance on Social Security income in shows that reliance on Social Security income in20172019 increased across age groups. increased across age groups.
Nearly 15About 13.9% of those % of those agedages 65-69 relied on Social Security for 90% or more of household income 65-69 relied on Social Security for 90% or more of household income
in 2017in 2019, compared with 16.7% for those , compared with 16.7% for those agedages 70-74, 70-74, 20.818.2% for those % for those agedages 75-59, and 26. 75-59, and 26.59% for % for
those thoseagedages 80 and older. This pattern may stem at least in part from the lifetime nature of Social 80 and older. This pattern may stem at least in part from the lifetime nature of Social
Security benefits, and also highlights the importance of Social Security spouse and survivor Security benefits, and also highlights the importance of Social Security spouse and survivor
benefits, particularly for older women.benefits, particularly for older women.6162 The estimates show that The estimates show that 2220.7% of women relied on Social % of women relied on Social
Security for 90% or more of household income in Security for 90% or more of household income in20172019. For widowed, divorced, and never . For widowed, divorced, and never
married individuals, reliance on Social Security for 90% or more of household income in married individuals, reliance on Social Security for 90% or more of household income in2017
2019 was 30.was 30.5%, 264%, 27.1%, and .1%, and 30.728.0%, respectively.
Aged%, respectively.
59 Our estimates add to a long literature on reliance on Social Security income among the older population. Andrew G.
Biggs and Sylvester J. Schieber, “Is There a Retirement Crisis?” National Affairs, no. 53, summer 2014,
https://www.nationalaffairs.com/publications/detail/is-there-a-retirement-crisis. Social Security Administration, Income
of the Population 55 or Older, 2014, April 2016, https://www.ssa.gov/policy/docs/statcomps/income_pop55/
index.html. Irena Dushi, Howard Iams, and Brad Trenkamp, “The Importance of Social Security Benefits to the Income
of the Aged Population,” Social Security Bulletin, vol. 72, no. 2, pp. 1-12, May 2017, https://www.ssa.gov/policy/docs/
ssb/v77n2/v77n2p1.html. Adam Bee and Joshua Mitchell, Do Older Americans Have More Income Than We Think?,
U.S. Census Bureau, July 2017, https://www.census.gov/content/dam/Census/library/working-papers/2017/demo/
SEHSD-WP2017-39.pdf. Anqi Chen, Alicia H. Munnell, and Geoffrey T. Sanzenbacher, How Much Income Do
Retirees Actually Have? Evaluating the Evidence from Five National Datasets, Center for Retirement Research,
November 2018, http://crr.bc.edu/working-papers/how-much-income-do-retirees-actually-have-evaluating-the-
evidence-from-five-national-datasets/. Irena Dushi and Brad Trenkamp, “Improving the Measurement of Retirement
Income of the Aged Population,” ORES Working Paper No. 116, Social Security Administration, January 2021,
https://www.ssa.gov/policy/docs/workingpapers/wp116.html.
60 Dushi and Trenkamp (2021), Table 5. Bee and Mitchell (2017), Table 10.
61 See CRS Report R41479, Social Security: Revisiting Benefits for Spouses and Survivors.
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Those aged individuals with less education had greater reliance on Social Security income in
2017. About 43.5 individuals with less education had greater reliance on Social Security income in 2019. About 45.3% of those with less than a high school diploma and % of those with less than a high school diploma and 22.321.5% of those with a high % of those with a high
school diploma but no college education relied on Social Security for 90% or more of household school diploma but no college education relied on Social Security for 90% or more of household
income in income in20172019, compared with 7.5% of those with at least a bachelor, compared with 7.5% of those with at least a bachelor’'s degree s degree (Figure 13). The . The
estimates based on household income quintile show that estimates based on household income quintile show that62.761.5% of aged individuals in the bottom % of aged individuals in the bottom
20% of the household income distribution rely on Social Security for 90% or more of household 20% of the household income distribution rely on Social Security for 90% or more of household
income in income in20172019, compared with , compared with less than 1%almost none of those in the top two household income quintiles. of those in the top two household income quintiles.
Similarly, 58.Similarly, 58.50% of aged individuals with household income below the poverty threshold relied % of aged individuals with household income below the poverty threshold relied
on Social Security for 90% or more of household income in on Social Security for 90% or more of household income in2017.
About 41.22019.
About 38.5% of those who identified as Hispanic and % of those who identified as Hispanic and 32.830.7% of those who identified as Black % of those who identified as Black
non-Hispanic received more than 90% of their household income from Social Security in non-Hispanic received more than 90% of their household income from Social Security in2017,
2019, compared with compared with15.314.9% of those who identified as White non-Hispanic and % of those who identified as White non-Hispanic and 26.623.5% of those % of those
who identified as non-Hispanic of other races identified as non-Hispanic of other races(Figure 13).
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Income for the Population Aged 65 and Older
(Figure 13).AgedAges 65 and Older by Selected Proportion of
Household Income from Social Security Benefits, 2017
2019 Source: CRS CRSAnalysisanalysis of data from the of data from the 20182020 Health and Retirement Study (HRS). Health and Retirement Study (HRS).
Notes: Statistics are among individuals 65 and older who had Social Security benefits in household income. Statistics are among individuals 65 and older who had Social Security benefits in household income.
Demographic characteristics are based on the time of the survey. Income is based on amounts received in the Demographic characteristics are based on the time of the survey. Income is based on amounts received in the
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previous calendar year (2017previous calendar year (2019). Married individuals include those married or partnered. Divorced individuals ). Married individuals include those married or partnered. Divorced individuals
include those divorced and separated. HS refers to High School. Poverty status is determined based on the include those divorced and separated. HS refers to High School. Poverty status is determined based on the
definition by U.S. Census Bureau (see definition by U.S. Census Bureau (seefootnote 56)footnote 57). Respondents in the White, Black, and Other groups are non-. Respondents in the White, Black, and Other groups are non-
Hispanic. Household income quintile Hispanic. Household income quintilelimits are $21,840, $39,700, $64,295, and $110,897 for all individuals. All
upper bounds are $24,132, $43,252, $68,480, and $116,252, and the fifth quintile has a lower bound of $116,253 and includes incomes up to the highest value in the data set. All values displayed in the table have been adjusted for population weights provided by the HRS.values displayed in the table have been adjusted for population weights provided by the HRS.
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Income for the Population Aged 65 and Older
Appendix. Additional Income Tables for
IndividualsAgedAges 65 and Older
Table A-1. Percentage of IndividualsAgedAges 65 and Older That Received Household
Income and the Distribution of Household Income by Source of Income, 2017
2019
Household Income Among Individuals with Income ($)
50th
Income
Sources Share with
Income
25th
Percentile or
75th
Sources
Income
Percentile
Median
Percentile
Average
Total
99.6%
26,339
51,906
95,340
84,864
Social Security
92.6%
15,130
22,080
31,739
23,931
Pensions and Pensions and
Retirement Retirement
59.8%
7,000
18,000
39,500
35,329
Savings
Pensions
44.9%
6,588
16,020
34,800
31,700
Annuities
7.9%
3,564
8,832
18,000
22,413
IRA
Withdrawals
29.3%
2,857
8,167
20,000
17,513
Asset Income
54.5%
80
1,400
14,453
21,466
Earnings
36.5%
9,000
32,000
73,700
61,101
Wages and
Salaries
30.6%
10,000
30,000
68,000
53,521
Self-
employment
12.6%
3,500
15,000
43,800
47,437
Income
Public Assistance
8.1%
642
1,764
4,650
4,096
SSI
3.5%
1,680
4,680
8,880
7,146
Savings
Other Public
6.1%
348
912
1,728
1,277
Assistance
Other Income
16.9%
5,004
15,600
36,560
40,608
No. of
9,011
9,011
9,011
9,011
9,011
Observations
Weighted Weighted
Population (in
51,707
51,707
51,707
51,707
51,707
thousands)
Population (in thousands)
Source: CRS analysis of data from the CRS analysis of data from the 20182020 Health and Retirement Study (HRS). Health and Retirement Study (HRS).
Notes: Asset income includes business income, interest, dividends, and rents. SSI is Supplemental Security Asset income includes business income, interest, dividends, and rents. SSI is Supplemental Security
Income. Other public assistance includes Income. Other public assistance includesdol arsdollars worth of Supplemental Nutrition Assistance Program worth of Supplemental Nutrition Assistance Program (SNAP)
benefits and other welfare income. Other income includes veteran benefits, workersbenefits and other welfare income. Other income includes veteran benefits, workers’' compensation, compensation,
unemployment compensation, alimony, child support, and financial assistance from friends or relatives not living unemployment compensation, alimony, child support, and financial assistance from friends or relatives not living
in the same household. All values displayed in the table have been adjusted for population weights provided by in the same household. All values displayed in the table have been adjusted for population weights provided by
the HRS.the HRS.
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Table A-2. Percentage of IndividualsAgedAges 65 and Older That Received Household Income from Each Income Source by
Source of Income, Marital Status and Household Income Quintile, 2017
2019
All Individuals
Married/Partnered
Single Persons
Household Income Quintile
Household Income Quintile
Household Income Quintile
Income
Sources
1st
2nd
3rd
4th
5th
1st
2nd
3rd
4th
5th
1st
2nd
3rd
4th
5th
Any income
98.0%
100.0%
100.0%
100.0%
100.0%
99.2%
100.0%
100.0%
100.0%
100.0%
96.1%
100.0%
100.0%
100.0%
100.0%
Social Security
90.1%
96.7%
95.5%
94.0%
87.0%
95.2%
96.5%
96.2%
91.4%
87.1%
83.6%
96.9%
96.2%
93.8%
87.7%
Pensions and Pensions and
Retirement
19.3%
55.2%
72.3%
79.6%
72.4%
31.5%
70.6%
75.3%
80.2%
70.0%
8.7%
30.8%
64.9%
71.5%
77.7%
Savings
Pensions
13.5%
40.9%
55.3%
62.1%
52.4%
23.1%
53.2%
58.9%
63.4%
49.2%
5.4%
23.1%
46.1%
55.0%
57.6%
Annuities
2.3%
4.6%
10.1%
11.0%
11.4%
1.1%
6.9%
9.3%
11.9%
11.1%
1.4%
3.3%
8.1%
10.9%
14.1%
IRA
Withdrawals
5.1%
19.8%
31.7%
41.6%
48.4%
11.1%
30.4%
38.5%
48.4%
46.8%
2.2%
6.9%
21.8%
29.1%
41.5%
Asset Income
18.9%
43.4%
58.2%
69.8%
82.2%
26.3%
54.8%
68.5%
71.6%
83.7%
10.0%
27.0%
48.4%
58.9%
77.3%
Earnings
9.5%
21.5%
37.2%
47.4%
67.2%
18.9%
37.5%
47.3%
57.0%
71.3%
5.6%
10.9%
17.8%
29.6%
40.8%
Wages and
Salaries
6.9%
17.6%
31.7%
39.8%
56.8%
15.1%
31.3%
39.9%
45.7%
62.0%
4.2%
7.1%
15.2%
26.1%
35.2%
Self-
employment
3.6%
6.0%
9.0%
13.4%
31.0%
6.5%
9.7%
13.3%
23.3%
32.6%
1.7%
4.3%
3.9%
5.9%
11.8%
Income
Public Assistance
29.0%
5.4%
2.9%
1.6%
1.4%
15.6%
3.2%
2.0%
1.6%
0.9%
40.0%
18.3%
3.9%
3.0%
2.1%
SSI
13.9%
1.8%
1.1%
0.3%
0.5%
8.1%
1.2%
0.4%
0.0%
0.4%
22.9%
3.2%
1.1%
0.8%
1.4%
Other Public
Assistance
22.1%
4.4%
1.8%
1.3%
0.9%
11.4%
2.0%
1.6%
1.5%
0.5%
29.4%
16.3%
3.2%
2.3%
0.7%
Other Income
3.8%
10.6%
18.5%
23.7%
28.2%
7.2%
17.4%
22.9%
26.7%
27.2%
2.9%
3.9%
10.1%
18.5%
22.9%
No. of
Observations
2,274
2,007
1,725
1,540
1,293
1,361
1,076
940
884
756
898
840
759
705
620
CRS-27
All Individuals
Married/Partnered
Single Persons
Household Income Quintile
Household Income Quintile
Household Income Quintile
Income
Sources
1st
2nd
3rd
4th
5th
1st
2nd
3rd
4th
5th
1st
2nd
3rd
4th
5th
Weighted
Population (in
10,353
10,300
10,344
10,339
10,341
6,351
6,332
6,341
6,344
6,338
4,025
3,983
3,994
4,014
3,985
thousands)
Source: CRS analysis of data from the 2018 Health and Retirement Study (HRS).
Notes: Asset income includes business income, interest, dividends, and rents. SSI is Supplemental Security Income. Other government transfers include dol ars worth of
SNAP benefits and other welfare income. Other income includes workers’Retirement Savings
from friends or relatives not living in the same household. Household income quintile from friends or relatives not living in the same household. Household income quintilelimits are $21,840, $39,700, $64,295, and $110,897 for all individuals; $36,895,
$58,548, $84,592, and $142,590 for married individuals; and $13,680, $21,034, $32,545, and $56,996upper bounds for all individuals are $24,132, $43,252, $68,480, and $116,252, and the fifth quintile has a lower bound of $116,253 and includes incomes up to the highest value in the data set. The respective thresholds are $39,964, $61,723, $91,298, and $147,300 for married individuals and $14,760, $22,970, $35,520, and $59,400 for single persons. All values displayed in the table have been for single persons. All values displayed in the table have been
adjusted for population weights provided by the HRS.adjusted for population weights provided by the HRS.
Table A-3. Percentage of Aggregate Income from Each Income Source Among IndividualsAgedAges 65 and Older by Marital
Status and Household Income Quintile, 2017
All Individuals
2019
Married/Partnered
Single Persons
Household Income Quintile
Household Income Quintile
Household Income Quintile
Income
Sources
1st
2nd
3rd
4th
5th
1st
2nd
3rd
4th
5th
1st
2nd
3rd
4th
5th
All income
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Social Security
83.2%
66.4%
46.1%
30.2%
11.4%
84.1%
59.6%
40.2%
26.6%
10.1%
80.2%
85.1%
64.8%
40.3%
15.1%
Pensions and Pensions and
Retirement Retirement
Savings
Weighted
5.5%
18.2%
27.5%
33.2%
25.7%
6.9%
21.2%
26.6%
34.6%
25.3%
2.6%
6.7%
21.0%
30.8%
28.4%
Savings
Pensions
4.2%
13.6%
20.1%
22.8%
16.0%
5.2%
15.4%
19.0%
23.1%
16.3%
1.8%
5.2%
15.7%
22.3%
17.5%
Annuities
0.4%
1.3%
2.3%
1.8%
3.0%
0.3%
1.4%
1.2%
1.8%
2.8%
0.2%
0.6%
1.6%
3.0%
3.7%
IRA
Withdrawals
0.8%
3.3%
5.1%
8.6%
6.7%
1.4%
4.3%
6.4%
9.6%
6.2%
0.5%
0.9%
3.8%
5.6%
7.2%
Asset Income
1.6%
4.2%
6.3%
10.3%
19.6%
1.4%
3.7%
6.9%
8.5%
17.9%
0.8%
2.1%
4.1%
7.5%
25.3%
CRS-28
All Individuals
Married/Partnered
Single Persons
Household Income Quintile
Household Income Quintile
Household Income Quintile
Income
Sources
1st
2nd
3rd
4th
5th
1st
2nd
3rd
4th
5th
1st
2nd
3rd
4th
5th
Earnings
2.9%
7.0%
13.6%
19.6%
32.6%
4.2%
9.9%
18.7%
23.4%
36.8%
2.2%
3.2%
5.8%
14.0%
19.6%
Wages and
Salaries
2.1%
6.2%
11.0%
16.7%
20.5%
3.2%
7.8%
16.0%
17.1%
22.4%
1.8%
2.1%
5.3%
11.7%
15.7%
Self-
employment
0.8%
0.8%
2.6%
2.9%
12.0%
1.0%
2.1%
2.7%
6.3%
14.4%
0.4%
1.0%
0.5%
2.3%
3.8%
Income
Public Assistance
5.9%
0.5%
0.3%
0.1%
0.2%
2.0%
0.4%
0.1%
0.0%
0.0%
13.3%
1.8%
0.6%
0.3%
0.7%
SSI
4.2%
0.3%
0.2%
0.1%
0.2%
1.4%
0.3%
0.1%
0.0%
0.0%
10.2%
0.8%
0.4%
0.2%
0.7%
Other Public
Assistance
1.7%
0.2%
0.1%
0.0%
0.0%
0.6%
0.1%
0.0%
0.0%
0.0%
3.1%
1.0%
0.2%
0.1%
0.0%
Other Income
0.9%
3.7%
6.2%
6.5%
10.5%
1.3%
5.3%
7.3%
7.0%
9.8%
0.9%
1.0%
3.8%
7.1%
10.9%
No. of
Observations
2,274
2,007
1,725
1,540
1,293
1,361
1,076
940
884
756
898
840
759
705
620
Weighted
Population (in
10,353
10,300
10,344
10,339
10,341
6,351
6,332
6,341
6,344
6,338
4,025
3,983
3,994
4,014
3,985
thousands)
Population (in thousands)
Source: CRS analysis of data from the CRS analysis of data from the 20182020 Health and Retirement Study (HRS). Health and Retirement Study (HRS).
Notes: Asset income includes business income, interest, dividends, and rents. SSI is Supplemental Security Income. Other government transfers include Asset income includes business income, interest, dividends, and rents. SSI is Supplemental Security Income. Other government transfers includedol arsdollars worth of worth of
SNAPSupplemental Nutrition Assistance Program benefits and other welfare income. Other income includes workers benefits and other welfare income. Other income includes workers’' compensation, unemployment compensation, alimony, child support, and financial assistance compensation, unemployment compensation, alimony, child support, and financial assistance
from friends or relatives not living in the same household. Household income quintile from friends or relatives not living in the same household. Household income quintilelimits are $21,840, $39,700, $64,295, and $110,897 for all individuals; $36,895,
$58,548, $84,592, and $142,590 for married individuals; and $13,680, $21,034, $32,545, and $56,996upper bounds for all individuals are $24,132, $43,252, $68,480, and $116,252, and the fifth quintile has a lower bound of $116,253 and includes incomes up to the highest value in the data set. The respective thresholds are $39,964, $61,723, $91,298, and $147,300 for married individuals and $14,760, $22,970, $35,520, and $59,400 for single persons. All values displayed in the table have been for single persons. All values displayed in the table have been
adjusted for population weights provided by the HRS. Sum of components may not equal 100% due to rounding.adjusted for population weights provided by the HRS. Sum of components may not equal 100% due to rounding.
CRS-29
Table A-4. Percentage of IndividualsAgedAges 65 and Older That Received Household Income by Source of Income, Marital
Status, and Race/Ethnicity, 2017
2019
All Individuals
Married/Partnered
Single Persons
White
Black
Other
White
Black
Other
White
Black
Other
Non-
Non-
Non-
Non-
Non-
Non-
Non-
Non-
Non-
Income Sources
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Any Income
99.9%
99.0%
99.2%
97.2%
100.0%
99.9%
98.7%
98.6%
99.8%
98.5%
99.7%
95.3%
Social Security
93.2%
91.3%
91.0%
89.1%
93.5%
96.0%
87.0%
90.6%
92.8%
88.4%
95.3%
86.8%
Pensions and
66.1%
37.6%
46.6%
28.7%
70.4%
46.8%
51.8%
33.4%
58.3%
31.6%
41.5%
21.9%
Retirement Savings
Pensions
48.8%
33.1%
31.9%
25.2%
52.7%
40.1%
31.3%
29.7%
41.6%
28.5%
33.0%
18.5%
Annuities
9.0%
2.8%
4.2%
3.6%
8.7%
4.2%
4.9%
5.2%
9.5%
1.8%
3.6%
1.4%
IRA
34.6%
6.5%
18.9%
8.1%
39.4%
11.2%
28.3%
9.8%
25.9%
3.5%
8.7%
5.6%
Withdrawals
Asset Income
62.3%
23.9%
45.6%
17.2%
67.0%
31.6%
53.9%
22.7%
53.8%
19.0%
36.8%
9.0%
Earnings
38.2%
30.5%
36.0%
27.6%
48.0%
39.9%
44.8%
35.3%
20.4%
24.1%
26.5%
16.2%
Wages and
Salaries
31.8%
26.9%
30.1%
23.0%
39.9%
35.8%
38.0%
29.6%
17.1%
21.0%
21.5%
13.2%
Self-
employment
13.4%
8.6%
14.4%
8.6%
17.9%
10.9%
20.0%
12.0%
5.3%
7.1%
8.2%
3.6%
Income
Public Assistance
5.1%
17.5%
12.8%
23.9%
3.0%
8.2%
9.4%
17.3%
8.9%
23.5%
16.8%
33.5%
SSI
1.5%
9.3%
8.2%
14.5%
0.9%
4.2%
8.7%
10.1%
2.6%
12.6%
7.6%
20.9%
Other Public
Assistance
4.3%
12.4%
7.3%
15.4%
2.4%
5.5%
3.4%
11.5%
7.8%
16.9%
11.7%
21.2%
Other Income
18.2%
14.5%
16.5%
8.3%
21.4%
20.3%
17.8%
10.0%
12.4%
10.7%
15.2%
5.7%
No. of
Observations
6,050
1,575
243
1,142
3,591
651
129
683
2,453
921
113
459
CRS-30
All Individuals
Married/Partnered
Single Persons
White
Black
Other
White
Black
Other
White
Black
Other
Non-
Non-
Non-
Non-
Non-
Non-
Non-
Non-
Non-
Income Sources
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Weighted
Population (in
41,108
4,785
1,457
4,356
26,471
1,875
766
2,593
14,563
2,902
682
1,763
thousands)
Source: CRS analysis of data from the 2018 Health and Retirement Study (HRS).
Notes: Asset income includes business income, interest, dividends, and rents. SSI is Supplemental Security Income. Other government transfers include dol ars worth of
SNAP benefits and other welfare income. Other income includes workers’
White Non-Hispanic
Black Non-Hispanic
Other Non-Hispanic
White Non-Hispanic
Black Non-Hispanic
Other Non-Hispanic
White Non-Hispanic
Black Non-Hispanic
Other Non-Hispanic
from friends or relatives not living in the same household. All values displayed in the table have been adjusted for population weights provided by the HRS.from friends or relatives not living in the same household. All values displayed in the table have been adjusted for population weights provided by the HRS.
Table A-5. Percentage of Aggregate Income from Each Income Source Among Individuals AgedAges 65 and Older by Marital
Status and Race/Ethnicity, 2017
All Individuals
2019
Married/Partnered
Single Persons
White
Black
Other
White
Black
Other
White
Black
Other
Non-
Non-
Non-
Non-
Non-
Non-
Non-
Non-
Non-
Income Sources
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Any Income
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Social Security
26.6%
39.0%
30.1%
43.6%
23.8%
37.0%
25.9%
37.6%
33.1%
40.7%
36.3%
55.1%
White Non-Hispanic
Black Non-Hispanic
Other Non-Hispanic
White Non-Hispanic
Black Non-Hispanic
Other Non-Hispanic
White Non-Hispanic
Black Non-Hispanic
Other Non-Hispanic
Weighted Pensions and
26.3%
22.6%
26.6%
18.4%
26.3%
24.4%
28.7%
20.7%
26.2%
21.1%
23.5%
14.0%
Retirement Savings
Pensions
17.2%
19.5%
15.6%
12.8%
17.4%
20.5%
14.1%
14.0%
16.5%
18.7%
18.0%
10.4%
Annuities
2.5%
1.5%
1.0%
3.3%
2.1%
1.1%
1.1%
4.6%
3.2%
1.8%
0.8%
0.7%
IRA
Withdrawals
6.6%
1.6%
10.0%
2.3%
6.7%
2.9%
13.5%
2.0%
6.5%
0.7%
4.7%
2.9%
Asset Income
14.7%
4.8%
14.5%
5.1%
13.1%
6.6%
19.0%
5.6%
18.6%
3.5%
7.5%
4.2%
Earnings
24.0%
24.2%
20.1%
22.2%
28.7%
22.3%
17.8%
25.2%
12.9%
25.6%
23.8%
16.4%
Wages and
Salaries
16.0%
20.8%
15.8%
17.5%
18.4%
19.8%
15.3%
19.0%
10.4%
21.6%
16.7%
14.7%
CRS-31
All Individuals
Married/Partnered
Single Persons
White
Black
Other
White
Black
Other
White
Black
Other
Non-
Non-
Non-
Non-
Non-
Non-
Non-
Non-
Non-
Income Sources
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Hispanic
Self-
employment
7.9%
3.4%
4.3%
4.7%
10.3%
2.4%
2.5%
6.3%
2.5%
4.1%
7.1%
1.7%
Income
Public Assistance
0.3%
1.8%
0.6%
2.9%
0.1%
0.3%
0.4%
1.4%
0.8%
2.9%
1.0%
5.6%
SSI
0.3%
1.4%
0.5%
2.2%
0.1%
0.2%
0.4%
1.1%
0.7%
2.2%
0.6%
4.4%
Other Public
0.1%
0.4%
0.2%
0.6%
0.0%
0.1%
0.1%
0.3%
0.2%
0.7%
0.3%
1.3%
Assistance
Other Income
8.2%
7.6%
8.1%
7.9%
8.0%
9.4%
8.1%
9.5%
8.4%
6.2%
8.0%
4.6%
No. of
6,050
1,575
243
1,142
3,591
651
129
683
2,453
921
113
459
Observations
Weighted
Population (in
41,108
4,785
1,457
4,356
26,471
1,875
766
2,593
14,563
2,902
682
1,763
thousands)
Population (in thousands)
Source: CRS analysis of data from the CRS analysis of data from the 20182020 Health and Retirement Study (HRS). Health and Retirement Study (HRS).
Notes: Asset income includes business income, interest, dividends, and rents. SSI is Supplemental Security Income. Other government transfers include Asset income includes business income, interest, dividends, and rents. SSI is Supplemental Security Income. Other government transfers includedol arsdollars worth of worth of
SNAPSupplemental Nutrition Assistance Program benefits and other welfare income. Other income includes workers benefits and other welfare income. Other income includes workers’' compensation, unemployment compensation, alimony, child support, and financial assistance compensation, unemployment compensation, alimony, child support, and financial assistance
from friends or relatives not living in the same household. All values displayed in the table have been adjusted for population weights provided by the HRS. Sum of from friends or relatives not living in the same household. All values displayed in the table have been adjusted for population weights provided by the HRS. Sum of
components may not equal 100% due to rounding.
CRS-32
Income for the Population Aged 65 and Older: Evidence from the Health Retirement Stud
Author Information
Zhe Li
Paul S. Davies
Analyst in Social Policy
Specialist in Income Security
Acknowledgments
CRS Research Assistant Paul Romero contributed to the design of visuals in this report.
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
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copy or otherwise use copyrighted material.
Congressional Research Service
R47341 · VERSION 1 · NEW
33
components may not equal 100% due to rounding.
1.
2.
3.
4.
See Office of Management and Budget (OMB), Budget of the United States Government, Fiscal Year 2025, Table S-3, https://www.whitehouse.gov/wp-content/uploads/2024/03/budget_fy2025.pdf. In May 2025, about 81% of Social Security beneficiaries were 65 years of age and older. See Social Security Administration (SSA), Monthly Statistical Snapshot, May 2025, Table 1, https://www.ssa.gov/policy/docs/quickfacts/stat_snapshot/.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
The data collection period for the 2020 HRS was March 2020 through June 2021. Due to the COVID-19 pandemic and restrictions on social contact, most interviews were conducted via telephone or web. This is different from other waves of HRS, in which interviews were normally conducted face to face or via telephone. It is unclear how the change in the data collection method may impact the data reporting. Another concern is that household composition during the initial months of the COVID pandemic in 2020 may have varied from that in 2019, when the income was received. For more information, see Institute for Social Research (ISR), University of Michigan, "Health and Retirement Study 2020 Core: Data Description and Usage," May 2023, https://hrsdata.isr.umich.edu/sites/default/files/documentation/data-descriptions/1697573142/h20dd.pdf.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
CRS analysis of restricted data from the 2018 HRS. For additional information, see Table A-1.
42.
43.
CRS analysis of restricted data from the 2018 HRS. For additional information, see Table A-1.
44.
45.
46.
47.
48.
49.
50.
51.
CRS analysis of restricted data from the 2018 HRS. For additional information, see Table A-1.
52.
53.
CRS analysis of restricted data from the 2018 HRS. For additional information, see Table A-1.
54.
55.
56.
57.
58.
59.
60.
Our estimates add to a long literature on reliance on Social Security income among the older population. Andrew G. Biggs and Sylvester J. Schieber, "Is There a Retirement Crisis?" National Affairs, no. 53, summer 2014, https://www.nationalaffairs.com/publications/detail/is-there-a-retirement-crisis. Social Security Administration, Income of the Population 55 or Older, 2014, April 2016, https://www.ssa.gov/policy/docs/statcomps/income_pop55/index.html. Irena Dushi, Howard Iams, and Brad Trenkamp, "The Importance of Social Security Benefits to the Income of the Aged Population," Social Security Bulletin, vol. 72, no. 2, pp. 1-12, May 2017, https://www.ssa.gov/policy/docs/ssb/v77n2/v77n2p1.html. Adam Bee and Joshua Mitchell, Do Older Americans Have More Income Than We Think?, U.S. Census Bureau, July 2017, https://www.census.gov/content/dam/Census/library/working-papers/2017/demo/SEHSD-WP2017-39.pdf. Anqi Chen, Alicia H. Munnell, and Geoffrey T. Sanzenbacher, How Much Income Do Retirees Actually Have? Evaluating the Evidence from Five National Datasets, Center for Retirement Research, November 2018, http://crr.bc.edu/working-papers/how-much-income-do-retirees-actually-have-evaluating-the-evidence-from-five-national-datasets/. Irena Dushi and Brad Trenkamp, "Improving the Measurement of Retirement Income of the Aged Population," ORES Working Paper No. 116, Social Security Administration, January 2021, https://www.ssa.gov/policy/docs/workingpapers/wp116.html.
61.
62.
Contents
- Introduction
- Data: Health and Retirement Study (HRS)
- Income Sources for Individuals Ages 65 and Older
- Social Security
- Pensions and Retirement Savings
- Asset Income
- Earnings
- Public Assistance
- Other Income
- Income for Aged Individuals, by Marital Status
- Income for Aged Individuals, by Household Income Quintiles
- Income for Aged Individuals, by Race/Ethnicity
- Income for Aged Individuals, by Age Groups
- Income Dependency on Social Security Benefits
Figures
- Figure 1. Share of Aggregate Income from Each Source Among Individuals Ages 65 and Older, 2019
- Figure 2. Median Household Income for Individuals Ages 65 and Older by Marital Status, 2019
- Figure 3. Share of Individuals Ages 65 and Older That Received Household Income from Each Income Source by Marital Status, 2019
- Figure 4. Share of Aggregate Income from Each Income Source Among Individuals Ages 65 and Older by Marital Status, 2019
- Figure 5. Share of Individuals Ages 65 and Older That Received Household Income from Selected Source by Household Income Quintile, 2019
- Figure 6. Share of Aggregate Income from Each Source Among Individuals Ages 65 and Older by Household Income Quintile, 2019
- Figure 7. Median Household Income for Individuals Ages 65 and Older by Race/Ethnicity, 2019
- Figure 8. Share of Individuals Ages 65 and Older That Received Household Income from Each Income Source by Race/Ethnicity, 2019
- Figure 9. Share of Aggregate Income from Each Income Source Among Individuals Ages 65 and Older by Race/Ethnicity, 2019
- Figure 10. Median Household Income for Individuals Ages 65 and Older by Age Group, 2019
- Figure 11. Share of Individuals Ages 65 and Older That Received Household Income from Each Income Source by Age Group, 2019
- Figure 12. Share of Aggregate Income from Each Income Source Among Individuals Ages 65 and Older by Age Group, 2019
- Figure 13. Percentage of Individuals Ages 65 and Older by Selected Proportion of Household Income from Social Security Benefits, 2019
Tables
- Table 1. Individual Income and Household Income for Individuals Ages 65 and Older, 2019
- Table 2. Share of Individuals Ages 65 and Older in Households That Received Income, and Median Amount of Household Income, by Income Source, 2019
- Table A-1. Percentage of Individuals Ages 65 and Older That Received Household Income and the Distribution of Household Income by Source of Income, 2019
- Table A-2. Percentage of Individuals Ages 65 and Older That Received Household Income from Each Income Source by Source of Income, Marital Status and Household Income Quintile, 2019
- Table A-3. Percentage of Aggregate Income from Each Income Source Among Individuals Ages 65 and Older by Marital Status and Household Income Quintile, 2019
- Table A-4. Percentage of Individuals Ages 65 and Older That Received Household Income by Source of Income, Marital Status, and Race/Ethnicity, 2019
- Table A-5. Percentage of Aggregate Income from Each Income Source Among Individuals Ages 65 and Older by Marital Status and Race/Ethnicity, 2019
Summary
partnered households, is the sum of income from each spouse in the household; household partnered households, is the sum of income from each spouse in the household; household
personal income.personal income.
Disability Insurance, or OASDI) and Supplemental Security Income (SSI), earnings, pensions and retirement savings, asset Disability Insurance, or OASDI) and Supplemental Security Income (SSI), earnings, pensions and retirement savings, asset
income, and others. This report addresses the number and proportion of aged individuals who received household income income, and others. This report addresses the number and proportion of aged individuals who received household income
from each source and the amount received, using the from each source and the amount received, using the
data from the Social Security Administration (SSA). Income reflects the annual amount received in data from the Social Security Administration (SSA). Income reflects the annual amount received in
and older received household income from Social Security. The median annual household Social Security benefit amount and older received household income from Social Security. The median annual household Social Security benefit amount
was $was $
aggregate income for individuals aggregate income for individuals
for aged individuals in the bottom 20% of the household income distribution, compared to for aged individuals in the bottom 20% of the household income distribution, compared to
individuals in the top 20% of the household income distribution.individuals in the top 20% of the household income distribution.
Share of Aggregate Income from Each Source for Individuals
Quintile, 2019 Source: CRS analysis of the CRS analysis of the
Notes: Each household income quintile represents 20% of the individuals. The Each household income quintile represents 20% of the individuals. The
income. The income. The
Retirement AccountsRetirement Accounts
' compensation, unemployment compensation, alimony, child support, financial assistance from outside the household. Public compensation, unemployment compensation, alimony, child support, financial assistance from outside the household. Public
assistance: assistance:
may not sum to 100% due to rounding.may not sum to 100% due to rounding.
Accounts (IRAs). The median household amount among recipients was $Accounts (IRAs). The median household amount among recipients was $
for for
bottom 20% of the household income distribution.bottom 20% of the household income distribution.
rent) in rent) in
in the bottom 20% of the household income distribution, compared with in the bottom 20% of the household income distribution, compared with
income distribution.income distribution.
income from earnings was income from earnings was
those in the top 20% of the household income distribution.those in the top 20% of the household income distribution.
median annual amount of $median annual amount of $
bottom 20% of the household income distribution.
Introduction
Older individuals receive income from a variety of sources, including public programs such as Older individuals receive income from a variety of sources, including public programs such asSocial Security (formally known as Old-Age, Survivors, and Disability Insurance, or OASDI) and Social Security (formally known as Old-Age, Survivors, and Disability Insurance, or OASDI) and
Supplemental Security Income (SSI), as well as pensions and retirement savings, earnings, Supplemental Security Income (SSI), as well as pensions and retirement savings, earnings,
interests and dividends. Because Americans interests and dividends. Because Americans
large and growing proportion of the U.S. population, and because much of their income is large and growing proportion of the U.S. population, and because much of their income is
provided through government-sponsored social insurance or income transfer programs or is provided through government-sponsored social insurance or income transfer programs or is
subsidized through income tax deductions and deferrals, the sources and amounts of income subsidized through income tax deductions and deferrals, the sources and amounts of income
among older Americans are important in congressional policy discussions.among older Americans are important in congressional policy discussions.
years a 65-yearyears a 65-year
women. In women. In
relatively larger number of individuals born from 1946 through 1964 (or baby boomers) live into relatively larger number of individuals born from 1946 through 1964 (or baby boomers) live into
old ages, together with the aging population more generally, the age profile of the population old ages, together with the aging population more generally, the age profile of the population
shifts. In shifts. In
18.5% of the population. By 2040, according to projections made by the U.S. Census Bureau, there will of the population. By 2040, according to projections made by the U.S. Census Bureau, there will
be 80.8 million people be 80.8 million people
federal spending. In federal spending. In
approximately $1.approximately $1.
directly to low-income older Americans through the SSI directly to low-income older Americans through the SSI
employees through the Civil Service Retirement System and the Federal Employeesemployees through the Civil Service Retirement System and the Federal Employees
System.System.
tax deferrals and deductions in the Internal Revenue Code.tax deferrals and deductions in the Internal Revenue Code.
promote sponsorship of pension plans by employers and encourage workers to save for promote sponsorship of pension plans by employers and encourage workers to save for
that current and projected limitations of social insurance and retirement programs may affect that current and projected limitations of social insurance and retirement programs may affect
retirement income security among the older population. For example, Social Security is facing a retirement income security among the older population. For example, Social Security is facing a
projected long-range funding shortfall.projected long-range funding shortfall.
and the Board of Trustees project that the asset reserves will be depleted in and the Board of Trustees project that the asset reserves will be depleted in
of trust fund reserves, the programof trust fund reserves, the program
benefits scheduled under current law in benefits scheduled under current law in
2099.10 Moreover, Social Security provides benefits to most retirees, and many aged individuals rely on Moreover, Social Security provides benefits to most retirees, and many aged individuals rely on
Social Security benefits for a substantial portion of their income. However, the benefit amounts Social Security benefits for a substantial portion of their income. However, the benefit amounts
for certain individuals are below the poverty line, such as some long-term low-wage earners.for certain individuals are below the poverty line, such as some long-term low-wage earners.
addition, Congress has expressed interest in policies affecting pensions and retirement savings as addition, Congress has expressed interest in policies affecting pensions and retirement savings as
the pension landscape has changed in recent decades. In the private sector, employer-sponsored the pension landscape has changed in recent decades. In the private sector, employer-sponsored
defined benefit (DB) pension plans, which guarantee retirees a lifetime stream of cash benefits, defined benefit (DB) pension plans, which guarantee retirees a lifetime stream of cash benefits,
have largely been replaced by definedhave largely been replaced by defined
in which retirement income is based on funds that accumulate in a workerin which retirement income is based on funds that accumulate in a worker
demographic and socioeconomic characteristics. Understanding income disparities among aged demographic and socioeconomic characteristics. Understanding income disparities among aged
individuals could help identify vulnerable populations and identify targeted policy options. For individuals could help identify vulnerable populations and identify targeted policy options. For
example, research has shown large and persistent disparities in retirement income and wealth example, research has shown large and persistent disparities in retirement income and wealth
across socioeconomic characteristics.across socioeconomic characteristics.
accounted for a larger share of total income among lower-income individuals accounted for a larger share of total income among lower-income individuals
15 and DB pensions remain a vital resource for those who expect such income in retirement, which and DB pensions remain a vital resource for those who expect such income in retirement, which
Security Administration (SSA); Security Administration (SSA);
were available. Analysis focuses on the sources and amounts of income received in the prior were available. Analysis focuses on the sources and amounts of income received in the prior
calendar year (calendar year (
household income from each source, and the amounts of income they receive from each source. household income from each source, and the amounts of income they receive from each source.
The report also shows how income received by aged individuals differs by marital status, age The report also shows how income received by aged individuals differs by marital status, age
group, race/ethnicity, and household income level. Since policymakers may be interested in how group, race/ethnicity, and household income level. Since policymakers may be interested in how
the Social Security program affects the household income of the older population, this report also the Social Security program affects the household income of the older population, this report also
discusses the proportion of individuals discusses the proportion of individuals
Security income and the characteristics of those individuals.Security income and the characteristics of those individuals.17
Data: Health and Retirement Study (HRS)
This report uses data from the This report uses data from the
calendar year calendar year
level, provide data on the receipt and amount of Social Security benefits, SSI payments, earnings, level, provide data on the receipt and amount of Social Security benefits, SSI payments, earnings,
and self-employment income.and self-employment income.
representative survey of the population over age 50, the HRS core survey is conducted by the representative survey of the population over age 50, the HRS core survey is conducted by the
University of MichiganUniversity of Michigan
combination of face-to-face and telephone interviews. Information is collected at both the combination of face-to-face and telephone interviews. Information is collected at both the
individual and household levels on a wide-range of topics including health, health services, labor individual and household levels on a wide-range of topics including health, health services, labor
force involvement (work, earnings, retirement, disability), economic status (income sources and force involvement (work, earnings, retirement, disability), economic status (income sources and
amounts, wealth by asset type, Social Security, pensions), family structure, and expectations. The amounts, wealth by asset type, Social Security, pensions), family structure, and expectations. The
household level data for married individuals include information from each spouse in the household level data for married individuals include information from each spouse in the
household. Every six years, a new six-year birth cohort is added to the HRS sample to maintain household. Every six years, a new six-year birth cohort is added to the HRS sample to maintain
its representation of the older population. In any given wave of data collection, the HRS includes its representation of the older population. In any given wave of data collection, the HRS includes
about 20,000 respondents. In total, over 43,000 respondents have participated in the HRS since its about 20,000 respondents. In total, over 43,000 respondents have participated in the HRS since its
inception in 1992. This report utilized the so-called RAND HRS data files, which are a series of inception in 1992. This report utilized the so-called RAND HRS data files, which are a series of
publicly-available, user-friendly HRS data files produced by RAND to improve the ease-of-use of publicly-available, user-friendly HRS data files produced by RAND to improve the ease-of-use of
the HRS and to promote the quality and consistency of the HRS data through standardized the HRS and to promote the quality and consistency of the HRS data through standardized
naming conventions, definitions, and documentation across HRS waves.naming conventions, definitions, and documentation across HRS waves.
and SSI benefits and earnings records to and SSI benefits and earnings records to
the HRS, roughly 70% of respondents have provided such consents. The linked HRS-SSA data the HRS, roughly 70% of respondents have provided such consents. The linked HRS-SSA data
richness of the HRS survey data with the details of SSArichness of the HRS survey data with the details of SSA
beneficial for a wide variety of research applications, including analysis of the income of the beneficial for a wide variety of research applications, including analysis of the income of the
population 65 or older.population 65 or older.
on Social Security and SSI benefits and earnings and self-employment income in place of HRS on Social Security and SSI benefits and earnings and self-employment income in place of HRS
survey reported measures for respondents who authorized their records to be released to survey reported measures for respondents who authorized their records to be released to
not authorize SSA to release their records to not authorize SSA to release their records to
measures. Roughly measures. Roughly
Social Security benefits, Social Security benefits,
records for earnings or self-employment income. The HRS survey data provide all other income records for earnings or self-employment income. The HRS survey data provide all other income
measures. Population weights provided by the HRS are applied to all reported estimates.measures. Population weights provided by the HRS are applied to all reported estimates.
of the survey date. Income measures pertain to one year before the survey year (i.e., of the survey date. Income measures pertain to one year before the survey year (i.e.,
Household income for married individuals is the sum of income from each spouse in the Household income for married individuals is the sum of income from each spouse in the
household,household,
married) is that individualmarried) is that individual
(before income and payroll taxes), and is as reported below:(before income and payroll taxes), and is as reported below:
Retirement Accounts (IRAs);Retirement Accounts (IRAs);
relatives not living in the same household.relatives not living in the same household.
Individual Income vs. Household Income
for married individuals is the sum of income from each spouse in the household; the household income for single for married individuals is the sum of income from each spouse in the household; the household income for single
individuals (i.e., those widowed, divorced or separated, and never married) is their individual income.individuals (i.e., those widowed, divorced or separated, and never married) is their individual income.
Table 1 displays median individual income and household income for individuals displays median individual income and household income for individuals
Among aged individuals with income, the median individual income was $Among aged individuals with income, the median individual income was $
from married individuals, for whom the median individual income was $from married individuals, for whom the median individual income was $
$75,390. Table 1. Individual Income and Household Income for Individuals
All Individuals
Married
Individual Income
Household Income
Individual Income
Household Income
Individual Income
Household Income
Individuals with Individuals with
Income
99.3%
99.7%
99.3%
99.9%
99.3%
99.3%
Median Income
$31,566
$55,000
$34,432
$75,390
$28,028
$28,028
No. of Observations
8,998
5,057
3,922
Weighted Population (in thousands)
54,632
34,354
20,278
Source: CRS analysis of data from the CRS analysis of data from the
not report marital status in the survey. Those individuals are included in the not report marital status in the survey. Those individuals are included in the
income that is available to an aged individual.income that is available to an aged individual.
household and may make financial decisions jointly, such as how many hours to work, who provides caregiving, household and may make financial decisions jointly, such as how many hours to work, who provides caregiving,
Social Security, a dependent spouse may receive monthly benefits based on the working spouseSocial Security, a dependent spouse may receive monthly benefits based on the working spouse
records.records.
programs (e.g., programs (e.g.,
reason, this report shows the household income level for aged individuals unless otherwise noted.reason, this report shows the household income level for aged individuals unless otherwise noted.
Income Sources for Individuals
The population The population
retirement savings, earnings, asset income, public assistance, and other sources.retirement savings, earnings, asset income, public assistance, and other sources.
retirement savingsretirement savings
the aged, accounting for the aged, accounting for
earnings accounted for 27.3%, and pensions and retirement savings constituted 23.8% of income. The remaining 19% of aggregate income included income from assets, public assistance, and other sources (seeaggregate income included income from assets, public assistance, and other sources (see Figure
1).
Figure 1. Share of Aggregate Income from Each Source Among Individuals
2019 Source: CRS analysis of data from the CRS analysis of data from the
Notes: Pensions and retirement savings include pension income from employer-sponsored defined benefit and Pensions and retirement savings include pension income from employer-sponsored defined benefit and
defined contribution plans, annuities, and withdrawals from Individual Retirement Accountsdefined contribution plans, annuities, and withdrawals from Individual Retirement Accounts
includes business income, interest, dividends, and rents. Other income includes veteran benefits, workersincludes business income, interest, dividends, and rents. Other income includes veteran benefits, workers
' compensation, unemployment compensation, alimony, child support, and financial assistance from friends or compensation, unemployment compensation, alimony, child support, and financial assistance from friends or
relatives not living in the same household. Public assistance includes Supplemental Security Income relatives not living in the same household. Public assistance includes Supplemental Security Income
for population weights provided by the HRS. The sum of the components may not equal 100% due to rounding.for population weights provided by the HRS. The sum of the components may not equal 100% due to rounding.
each income source in each income source in
shows the median income amount for households who received that type of income. Detailed shows the median income amount for households who received that type of income. Detailed
Table A-1.
Table 2. Share of Individuals
2019
Income Sources
Income (%) Median Household Income ($)
Total
99.7
55,000
Social Security
91.9
24,115
58.7
19,644
Asset Income
55.7
1,332
Earnings
37.5
36,500
Public Assistance
7.6
2,160
Other Income
16.8
14,736
No. of Observations
8,998
Weighted Population (in thousands)
54,632
members, and certain family members of deceased workers.members, and certain family members of deceased workers.
Security benefits for themselves and their family members by working in Social Security-covered Security benefits for themselves and their family members by working in Social Security-covered
employment and by making payroll tax contributions on those earnings.employment and by making payroll tax contributions on those earnings.
requirements, a worker generally needs 40 earnings credits (10 years of covered employment) to requirements, a worker generally needs 40 earnings credits (10 years of covered employment) to
be eligible for a Social Security retired-worker benefit.be eligible for a Social Security retired-worker benefit.
(FRA) is the age at which workers can first claim (FRA) is the age at which workers can first claim full Social Security retired-worker benefits. The Social Security retired-worker benefits. The
claim benefits before the FRA are generally subject to a permanent reduction in their benefits.claim benefits before the FRA are generally subject to a permanent reduction in their benefits.
36 Spouses can also claim reduced spousal benefits based on the workerSpouses can also claim reduced spousal benefits based on the worker
workers,workers,
paid workers receive relatively lower benefits than high-paid workers. The Social Security benefit paid workers receive relatively lower benefits than high-paid workers. The Social Security benefit
formula, however, is progressive—it is weighted to replace a greater share of career-average formula, however, is progressive—it is weighted to replace a greater share of career-average
earnings for low-paid workers than for high-paid workers, who were expected to be able to save earnings for low-paid workers than for high-paid workers, who were expected to be able to save
more individually than lower-paid workers. Therefore, low-paid workers receive relatively higher more individually than lower-paid workers. Therefore, low-paid workers receive relatively higher
benefits relative to their career-average earnings and payroll tax contributions.benefits relative to their career-average earnings and payroll tax contributions.
Security (Security (
median household benefit amount was $median household benefit amount was $
household Social Security benefits between $10,household Social Security benefits between $10,
received household benefits less than $10,received household benefits less than $10,
in excess of $41,710.41 Pensions and Retirement Savings
Pensions and retirement savings include pension income from employer-sponsored DB and DC Pensions and retirement savings include pension income from employer-sponsored DB and DC
plans, annuities, and withdrawals from IRAs.plans, annuities, and withdrawals from IRAs.
older received household income from pensions and retirement savings, with a median household older received household income from pensions and retirement savings, with a median household
amount of $amount of $
and retirement savings varied substantially across the aged population. Among aged individuals and retirement savings varied substantially across the aged population. Among aged individuals
who received household income from pensions and retirement savings, about 35% received less who received household income from pensions and retirement savings, about 35% received less
than $10,000, while about 25% received more than $40,000.than $10,000, while about 25% received more than $40,000.
sponsored DB and DC pensions. DB plans usually offer a lifetime annuity (i.e., periodic sponsored DB and DC pensions. DB plans usually offer a lifetime annuity (i.e., periodic
savings accounts generally funded through voluntary pre-tax contributions by the worker, which savings accounts generally funded through voluntary pre-tax contributions by the worker, which
are sometimes partially or fully matched by the employer.are sometimes partially or fully matched by the employer.
to invest and how to allocate these funds among the investment options. Retired households can to invest and how to allocate these funds among the investment options. Retired households can
generally withdraw funds out of these accounts as a source of income, but face decisions generally withdraw funds out of these accounts as a source of income, but face decisions
regarding the timing, rate, and form of withdrawal.regarding the timing, rate, and form of withdrawal.
and older received household income from DB or DC pensions; the median household amount and older received household income from DB or DC pensions; the median household amount
was $was $
annuities in annuities in
likelihood that people may outlive their resources and to alleviate some post-retirement likelihood that people may outlive their resources and to alleviate some post-retirement
investment risks. Among aged individuals who received household income from non-pension investment risks. Among aged individuals who received household income from non-pension
annuities in annuities in
income (e.g., wages, salaries, commissions, self-employment income) can establish IRAs to income (e.g., wages, salaries, commissions, self-employment income) can establish IRAs to
accumulate funds for retirement on a tax-advantaged basis.accumulate funds for retirement on a tax-advantaged basis.
directly to an IRA, the majority of IRA funds come from rollovers of DC plan assets.directly to an IRA, the majority of IRA funds come from rollovers of DC plan assets.
accounts. The median household withdrawal was $8,accounts. The median household withdrawal was $8,
type of income (type of income (
Asset income includes capital income from business, rent, interest, and dividends. Asset income Asset income includes capital income from business, rent, interest, and dividends. Asset income
is relatively common among individuals is relatively common among individuals
aged individuals received household income from assets; the median household amount was aged individuals received household income from assets; the median household amount was
household income from assets received less than $household income from assets received less than $
$12,600.51 Earnings
Earnings include income from wages and salaries and self-employment. Older individuals Earnings include income from wages and salaries and self-employment. Older individuals
generally leave the labor force or reduce working hours when they age. In generally leave the labor force or reduce working hours when they age. In
individuals individuals
median household earnings amount was $median household earnings amount was $
income sources). The household earnings amount was less than $income sources). The household earnings amount was less than $
individuals with household earnings, and it was more than $individuals with household earnings, and it was more than $
those individuals.those individuals.
self-employment (self-employment (
aged individuals who received household income from those income sources, compared with aged individuals who received household income from those income sources, compared with
. Public Assistance
Public assistance includes SSI and other public assistance (e.g., welfare and dollars worth of Public assistance includes SSI and other public assistance (e.g., welfare and dollars worth of
SNAP).SNAP).
and their median annual household benefit amount was $and their median annual household benefit amount was $
amount was less than $10,000 for most aged individuals.amount was less than $10,000 for most aged individuals.
blind, and disabled individuals who have income and assets within prescribed program limits. blind, and disabled individuals who have income and assets within prescribed program limits.
The program is intended to provide a guaranteed minimum level of income to adults who have The program is intended to provide a guaranteed minimum level of income to adults who have
difficulty meeting their basic living expenses due to age (65 and older) or disability, and who difficulty meeting their basic living expenses due to age (65 and older) or disability, and who
have little or no Social Security or other income.have little or no Social Security or other income.
receiving SSI has steadily fallen since the program began in 1974,receiving SSI has steadily fallen since the program began in 1974,
percentage of people percentage of people
the value of Social Security benefits—which reduces the value of onethe value of Social Security benefits—which reduces the value of one
56 In 2019, about 3.about 3.
medianmedian annual benefit amount was $4, benefit amount was $4,
individuals who received household income from SSI were in the bottom 20% of the household individuals who received household income from SSI were in the bottom 20% of the household
income distribution, and more than half were in poverty.income distribution, and more than half were in poverty.
programs in programs in
Other Income
Individuals Individuals
' compensation, unemployment compensation, alimony, child support, and financial assistance compensation, unemployment compensation, alimony, child support, and financial assistance
from friends or relatives not living in the same household. In from friends or relatives not living in the same household. In
individuals received household income from other sources; the median household amount among individuals received household income from other sources; the median household amount among
those individuals was $those individuals was $
14,736. Income for Aged Individuals, by Marital Status
were widowed, 12.were widowed, 12.
than single individuals (those widowed, divorced or separated, and never married), since a than single individuals (those widowed, divorced or separated, and never married), since a
married individual might have household income from more than one person. In married individual might have household income from more than one person. In
household income for married individuals household income for married individuals
28,081 for widow(er)s, $for widow(er)s, $
individuals (seeindividuals (see
Figure 2).
Figure 2. Median Household Income for Individuals
Status, 2019 Source: CRS analysis of data from the CRS analysis of data from the
Notes: Married individuals include those married or partnered. Divorced individuals include those divorced and Married individuals include those married or partnered. Divorced individuals include those divorced and
separated. Household income for married and partnered individuals is the sum of income from each spouse separated. Household income for married and partnered individuals is the sum of income from each spouse or partner in
the household. The sample in this figure includes a small share of individuals the household. The sample in this figure includes a small share of individuals
did not receive household income in did not receive household income in
weights provided by the HRS.weights provided by the HRS.
each income source, based on their marital status in each income source, based on their marital status in
household income was generally common among both married individuals and single persons.household income was generally common among both married individuals and single persons.
pensions and retirement savings and asset income than single persons. About pensions and retirement savings and asset income than single persons. About
individuals received household income from pensions and retirement savings, compared with individuals received household income from pensions and retirement savings, compared with
53.53.
never married. Similarly, around never married. Similarly, around
income in household income, compared with income in household income, compared with
separated individuals, and separated individuals, and
earnings than single persons. About 46.earnings than single persons. About 46.
household income from earnings, compared to household income from earnings, compared to
or separated, and or separated, and
partly because about half of them were partly because about half of them were
public assistance than married individuals. About public assistance than married individuals. About
older received household income from public assistance, compared with older received household income from public assistance, compared with
or separated, 10.or separated, 10.
Figure 3. Share of Individuals
2019 Source: CRS analysis of data from the CRS analysis of data from the
Notes: Married individuals include those married or partnered. Divorced individuals include those divorced and Married individuals include those married or partnered. Divorced individuals include those divorced and
separated. Pensions and retirement savings include pension income from employer-sponsored defined benefit separated. Pensions and retirement savings include pension income from employer-sponsored defined benefit
and defined contribution plans, annuities, and withdrawals from Individual Retirement Accountsand defined contribution plans, annuities, and withdrawals from Individual Retirement Accounts
income includes business income, interest, dividends, and rents. Other income includes veteran benefits, income includes business income, interest, dividends, and rents. Other income includes veteran benefits,
friends or relatives not living in the same household. Public assistance includes friends or relatives not living in the same household. Public assistance includes
weights provided by the HRS.weights provided by the HRS.
and older by marital status in and older by marital status in
total income for aged single persons than for married individuals. Social Security benefits total income for aged single persons than for married individuals. Social Security benefits
accounted for accounted for
and and
proportions of total income from pensions and retirement savings, asset income, and public proportions of total income from pensions and retirement savings, asset income, and public
assistance were also higher for aged single persons than for married individuals, respectively.assistance were also higher for aged single persons than for married individuals, respectively.
were married than for aged single persons. This is partly because married individuals were more were married than for aged single persons. This is partly because married individuals were more
likely to receive household income from earnings and the median earnings were usually higher likely to receive household income from earnings and the median earnings were usually higher
than the median of other income sources.than the median of other income sources.
Figure 4. Share of Aggregate Income from Each Income Source Among Individuals
2019 Source: CRS analysis of data from the CRS analysis of data from the
Notes: Married individuals include those married or partnered. Divorced individuals include those divorced and Married individuals include those married or partnered. Divorced individuals include those divorced and
separated. Pensions and retirement savings include pension income from employer-sponsored defined benefit separated. Pensions and retirement savings include pension income from employer-sponsored defined benefit
and defined contribution plans, annuities, and withdrawals from Individual Retirement Accountsand defined contribution plans, annuities, and withdrawals from Individual Retirement Accounts
income includes business income, interest, dividends, and rents. Other income includes veteran benefits, income includes business income, interest, dividends, and rents. Other income includes veteran benefits,
friends or relatives not living in the same household. Public assistance includes friends or relatives not living in the same household. Public assistance includes
weights provided by the HRS. Individual components may not sum to 100% due to rounding.weights provided by the HRS. Individual components may not sum to 100% due to rounding.
Quintiles The sources of income received by individuals 65 and older whose household incomes are at the The sources of income received by individuals 65 and older whose household incomes are at the
lower end of the household income distribution differ from the sources of income of people at the lower end of the household income distribution differ from the sources of income of people at the
upper end of the household income upper end of the household income
who received household income from different income sources by household income quintile in who received household income from different income sources by household income quintile in
aged individuals with the least household income, and the fifth quintile depicts the 20% of aged aged individuals with the least household income, and the fifth quintile depicts the 20% of aged
individuals with the most household income. In individuals with the most household income. In
income was generally common among aged individuals throughout the household income income was generally common among aged individuals throughout the household income
distribution, while receipt of other income sources generally distribution, while receipt of other income sources generally
distribution.distribution.
pensions and retirement savings in pensions and retirement savings in
About About
income from pensions and retirement savings, compared to income from pensions and retirement savings, compared to
income quintile, and income quintile, and
quintiles quintiles (Figure 5). The finding that aged individuals with lower household income were less . The finding that aged individuals with lower household income were less
likely to receive income from pensions and retirement savings might be due to lower labor force likely to receive income from pensions and retirement savings might be due to lower labor force
pension plans.pension plans.
household income from earnings, compared with almost household income from earnings, compared with almost
income quintile income quintile (Figure 5). This is partly because aged individuals with the most household . This is partly because aged individuals with the most household
income were relatively younger and still remained in the labor force. Approximately 74income were relatively younger and still remained in the labor force. Approximately 74.2% of aged % of aged
individuals in the top household income quintile were individuals in the top household income quintile were
of those in the bottom household income quintile.of those in the bottom household income quintile.
distribution were also less likely to receive household income from assets and other sources. For distribution were also less likely to receive household income from assets and other sources. For
example, in example, in
received household income from assets, compared with about 82.received household income from assets, compared with about 82.
household income quintile. About household income quintile. About
household income distribution received some other income, compared with more than household income distribution received some other income, compared with more than
26.5% among those in the top household income quintile.among those in the top household income quintile.
to receive household income from public assistance. Into receive household income from public assistance. In
aged individuals in the bottom quintile of the household income distribution received SSI or other aged individuals in the bottom quintile of the household income distribution received SSI or other
public assistance, compared with less than 6% for aged individuals with higher household public assistance, compared with less than 6% for aged individuals with higher household
income.income.
sources by household income quintile and marital status, sources by household income quintile and marital status,
Figure 5. Share of Individuals
2019 Source: CRS analysis of data from the CRS analysis of data from the
Notes: Pensions and retirement savings include pension income from employer-sponsored defined benefit and Pensions and retirement savings include pension income from employer-sponsored defined benefit and
defined contribution plans, annuities, and withdrawals from Individual Retirement Accountsdefined contribution plans, annuities, and withdrawals from Individual Retirement Accounts
includes business income, interest, dividends, and rents. Other income includes veteran benefits, workersincludes business income, interest, dividends, and rents. Other income includes veteran benefits, workers
' compensation, unemployment compensation, alimony, child support, and financial assistance from friends or compensation, unemployment compensation, alimony, child support, and financial assistance from friends or
relatives not living in the same household. Public assistance includes relatives not living in the same household. Public assistance includes
other welfare income. Household income quintile other welfare income. Household income quintile
upper bounds are $24,132, $43,252, $68,480, and $116,252, and the fifth quintile has a lower bound of $116,253 and includes incomes up to the highest value in the data set. All values displayed in the table have been adjusted for population weights provided by the HRS. For information on values displayed in the table have been adjusted for population weights provided by the HRS. For information on
detailed income sources, detailed income sources,
source by household income quintile in source by household income quintile in
provided provided
quintile, and quintile, and
from Social Security significantly decreased as household income increased. Social Security paid from Social Security significantly decreased as household income increased. Social Security paid
this source, in this source, in
aggregate income for aged individuals aggregate income for aged individuals (Figure 6). This income source accounted for about 30% . This income source accounted for about 30%
of aggregate income for those in the of aggregate income for those in the
25% for those with the most household income. Aged individuals in the top household income 25% for those with the most household income. Aged individuals in the top household income
quintile received a relatively smaller percentage of aggregate income from pensions and quintile received a relatively smaller percentage of aggregate income from pensions and
retirement savings partly because they also received more than half of aggregate income from retirement savings partly because they also received more than half of aggregate income from
asset income and earnings. Aged individuals in the bottom household income quintile received a asset income and earnings. Aged individuals in the bottom household income quintile received a
smaller percentage of aggregate income from pensions and retirement savings mainly because a smaller percentage of aggregate income from pensions and retirement savings mainly because a
smaller percentage of those individuals received household income from those sources.smaller percentage of those individuals received household income from those sources.
for individuals for individuals
household income. For household income. For
income for aged individuals in the top household income quintile, compared with 1.income for aged individuals in the top household income quintile, compared with 1.
in the bottom household income quintile; earnings accounted for in the bottom household income quintile; earnings accounted for
by aged individuals in the top household income quintile, compared with by aged individuals in the top household income quintile, compared with
bottom household income quintile.bottom household income quintile.
individuals, although it was somewhat more important for aged individuals in the bottom individuals, although it was somewhat more important for aged individuals in the bottom
household income quintile, accounting for 5.household income quintile, accounting for 5.
and marital status, seeand marital status, see Table A-3.
Figure 6. Share of Aggregate Income from Each Source Among Individuals
2019 Source: CRS analysis of data from the CRS analysis of data from the
Notes: Pensions and retirement savings include pension income from employer-sponsored defined benefit and Pensions and retirement savings include pension income from employer-sponsored defined benefit and
defined contribution plans, annuities, and withdrawals from Individual Retirement Accountsdefined contribution plans, annuities, and withdrawals from Individual Retirement Accounts
includes business income, interest, dividends, and rents. Other income includes veteran benefits, workersincludes business income, interest, dividends, and rents. Other income includes veteran benefits, workers
' compensation, unemployment compensation, alimony, child support, and financial assistance from friends or compensation, unemployment compensation, alimony, child support, and financial assistance from friends or
relatives not living in the same household. Public assistance includes relatives not living in the same household. Public assistance includes
other welfare income. Household income quintile other welfare income. Household income quintile
components may not sum to 100% due to rounding. For information on detailed income sources, components may not sum to 100% due to rounding. For information on detailed income sources,
3.
Hispanic Black, Hispanic Black,
other races.other races.
older by race/ethnicity. Median household income in older by race/ethnicity. Median household income in
who identified as non-Hispanic White ($who identified as non-Hispanic White ($
identified as Hispanic ($identified as Hispanic ($
24,960).
Figure 7. Median Household Income for Individuals
2019 Source: CRS analysis of data from the CRS analysis of data from the
Notes: Respondents in the White, Black and Other groups are non-Hispanic. Household income for married Respondents in the White, Black and Other groups are non-Hispanic. Household income for married
and partnered individuals is the sum of income from each spouse in the household. All values displayed in the and partnered individuals is the sum of income from each spouse in the household. All values displayed in the
table have been adjusted for population weights provided by the HRS.table have been adjusted for population weights provided by the HRS.
race/ethnicity. Social Security income was the most common source across all racial and ethnic race/ethnicity. Social Security income was the most common source across all racial and ethnic
groups. Receipt of Social Security income in groups. Receipt of Social Security income in
as non-Hispanic White had income from pensions and retirement savings and as non-Hispanic White had income from pensions and retirement savings and
income, the respective percentages for those who identified as Hispanic were 28.income, the respective percentages for those who identified as Hispanic were 28.
6% (Figure 8). Slightly more than one-third (. Slightly more than one-third (
had income from pensions and retirement savings in had income from pensions and retirement savings in
common among those who identified as non-Hispanic White and non-Hispanic of other races, and common among those who identified as non-Hispanic White and non-Hispanic of other races, and
least common among those who identified as Hispanic least common among those who identified as Hispanic (Figure 8)
common (common (
depressed by low receipt among those who identified as non-Hispanic White. Nearly one-depressed by low receipt among those who identified as non-Hispanic White. Nearly one-
(Figure 8)
2019, including veteransincluding veterans' benefits, unemployment insurance, and workers compensation. Receipt of benefits, unemployment insurance, and workers compensation. Receipt of
other income was substantially less common among those who identified as Hispanic and non-other income was substantially less common among those who identified as Hispanic and non-
Hispanic Black compared with those who identified as non-Hispanic White and non-Hispanic of Hispanic Black compared with those who identified as non-Hispanic White and non-Hispanic of
other races.other races.
sources by race and ethnicity and marital status, sources by race and ethnicity and marital status,
Figure 8. Share of Individuals
2019 Source: CRS analysis of data from the CRS analysis of data from the
Notes: Respondents in the White, Black and Other groups are non-Hispanic. Pensions and retirement savings Respondents in the White, Black and Other groups are non-Hispanic. Pensions and retirement savings
include pension income from employer-sponsored defined benefit and defined contribution plans, annuities, and include pension income from employer-sponsored defined benefit and defined contribution plans, annuities, and
withdrawals from Individual Retirement Accountswithdrawals from Individual Retirement Accounts
dividends, and rents. Other income includes veteran benefits, workersdividends, and rents. Other income includes veteran benefits, workers
compensation, alimony, child support, and financial assistance from friends or relatives not living in the same compensation, alimony, child support, and financial assistance from friends or relatives not living in the same
household. Public assistance includes household. Public assistance includes
displayed in the table have been adjusted for population weights provided by the HRS. For information on displayed in the table have been adjusted for population weights provided by the HRS. For information on
detailed income sources, detailed income sources,
ages 65 and older by race and ethnicity. Following the patterns of receipt described above, Social 65 and older by race and ethnicity. Following the patterns of receipt described above, Social
Security income accounted for the largest share of aggregate income in Security income accounted for the largest share of aggregate income in
ethnicity groups among aged individuals. Particularly among those who identified as Hispanic ethnicity groups among aged individuals. Particularly among those who identified as Hispanic
and those who identified as non-Hispanic Black, Social Security accounted for a large proportion and those who identified as non-Hispanic Black, Social Security accounted for a large proportion
of household income in of household income in
Figure 9 shows that, taken together, pensions and retirement savings and asset income accounted shows that, taken together, pensions and retirement savings and asset income accounted
for between for between
identified as Hispanic or non-Hispanic Black. In contrast, pensions and retirement savings and identified as Hispanic or non-Hispanic Black. In contrast, pensions and retirement savings and
identified as non-Hispanic White and non-Hispanic of other races.identified as non-Hispanic White and non-Hispanic of other races.
ethnicity groups in 2017 ethnicity groups in 2017 (Figure 9).
household income in household income in
Hispanic and non-Hispanic Black who received public assistance in Hispanic and non-Hispanic Black who received public assistance in
from public assistance programs accounted for a relatively small share of aggregate household from public assistance programs accounted for a relatively small share of aggregate household
income in income in
status, seestatus, see Table A-5.
Figure 9. Share of Aggregate Income from Each Income Source Among Individuals
Notes: Respondents in the White, Black and Other groups are non-Hispanic. Pensions and retirement savings Respondents in the White, Black and Other groups are non-Hispanic. Pensions and retirement savings
include pension income from employer-sponsored defined benefit and defined contribution plans, annuities, and include pension income from employer-sponsored defined benefit and defined contribution plans, annuities, and
withdrawals from Individual Retirement Accountswithdrawals from Individual Retirement Accounts
dividends, and rents. Other income includes veteran benefits, workersdividends, and rents. Other income includes veteran benefits, workers
compensation, alimony, child support, and financial assistance from friends or relatives not living in the same compensation, alimony, child support, and financial assistance from friends or relatives not living in the same
household. Public assistance includes household. Public assistance includes
displayed in the table have been adjusted for population weights provided by the HRS. Individual components displayed in the table have been adjusted for population weights provided by the HRS. Individual components
may not sum to 100% due to rounding. For information on detailed income sources, may not sum to 100% due to rounding. For information on detailed income sources,
with age, from $with age, from $
(Figure 10).
Figure 10. Median Household Income for Individuals
Group, 2019 Source: CRS Analysis of data from the CRS Analysis of data from the
Notes: Household income for married individuals is the sum of income from each spouse in the household. All Household income for married individuals is the sum of income from each spouse in the household. All
values displayed in the table have been adjusted for population weights provided by the HRS.values displayed in the table have been adjusted for population weights provided by the HRS.
common income source in common income source in
household income from Social Security in household income from Social Security in
age group. Some individuals in this age group may have been transitioning from the labor force to age group. Some individuals in this age group may have been transitioning from the labor force to
retirement, and may not yet have applied for Social Security benefits due to the increase in the retirement, and may not yet have applied for Social Security benefits due to the increase in the
FRA, as evidenced by the large proportion with earnings (FRA, as evidenced by the large proportion with earnings (
working histories may not qualify for Social Security and may qualify for SSI or other public working histories may not qualify for Social Security and may qualify for SSI or other public
assistance.assistance.
income sources income sources (Figure 11). However, a somewhat smaller proportion of the youngest age group . However, a somewhat smaller proportion of the youngest age group
(ages 65-69) received income from pensions, retirement savings, and assets in (ages 65-69) received income from pensions, retirement savings, and assets in
because a larger proportion were still working. The percentage of older individuals with because a larger proportion were still working. The percentage of older individuals with
household income from earnings in household income from earnings in
69 to 10.69 to 10.
assistance programs in assistance programs in
from other sources in from other sources in
compensation. Such income, which to some extent may be tied to recent former employment, was compensation. Such income, which to some extent may be tied to recent former employment, was
received less frequently among individuals received less frequently among individuals
Figure 11. Share of Individuals
2019 Source: CRS analysis of data from the CRS analysis of data from the
Notes: Pensions and retirement savings include pension income from employer-sponsored defined benefit and Pensions and retirement savings include pension income from employer-sponsored defined benefit and
defined contribution plans, annuities, and withdrawals from Individual Retirement Accountsdefined contribution plans, annuities, and withdrawals from Individual Retirement Accounts
includes business income, interest, dividends, and rents. Other income includes veteran benefits, workersincludes business income, interest, dividends, and rents. Other income includes veteran benefits, workers
' compensation, unemployment compensation, alimony, child support, and financial assistance from friends or compensation, unemployment compensation, alimony, child support, and financial assistance from friends or
relatives not living in the same household. Public assistance includes relatives not living in the same household. Public assistance includes
other welfare income. All values displayed in the table have been adjusted for population weights provided by the other welfare income. All values displayed in the table have been adjusted for population weights provided by the
HRS.HRS.
ages 65-69 came from earnings, whereas the older age groups received larger shares of aggregate 65-69 came from earnings, whereas the older age groups received larger shares of aggregate
income from retirement sources such as Social Security, pensions and retirement savings, and income from retirement sources such as Social Security, pensions and retirement savings, and
asset income. For individuals asset income. For individuals
2019 was from Social Security, nearly one-was from Social Security, nearly one-
Conversely, for individuals Conversely, for individuals
retirement savings, retirement savings, about one-fifth (19
all age groups, the share of aggregate income from public assistance programs in all age groups, the share of aggregate income from public assistance programs in
Figure 12. Share of Aggregate Income from Each Income Source Among Individuals
2019 Source: CRS analysis of data from the CRS analysis of data from the
Notes: Pensions and retirement savings include pension income from employer-sponsored defined benefit and Pensions and retirement savings include pension income from employer-sponsored defined benefit and
defined contribution plans, annuities, and withdrawals from Individual Retirement Accountsdefined contribution plans, annuities, and withdrawals from Individual Retirement Accounts
includes business income, interest, dividends, and rents. Other income includes veteran benefits, workersincludes business income, interest, dividends, and rents. Other income includes veteran benefits, workers
' compensation, unemployment compensation, alimony, child support, and financial assistance from friends or compensation, unemployment compensation, alimony, child support, and financial assistance from friends or
relatives not living in the same household. Public assistance includes relatives not living in the same household. Public assistance includes
other welfare income. All values displayed in the table have been adjusted for population weights provided by the other welfare income. All values displayed in the table have been adjusted for population weights provided by the
HRS. Individual components may not sum to 100% due to rounding.HRS. Individual components may not sum to 100% due to rounding.
As noted previously, Social Security was the most common source of income and also the largest As noted previously, Social Security was the most common source of income and also the largest
source of income among the population source of income among the population
particularly important for older individuals (particularly important for older individuals (
household income, and aged individuals who identify as Hispanic and non-Hispanic Black. household income, and aged individuals who identify as Hispanic and non-Hispanic Black.
Figure 13 measures reliance on Social Security income in measures reliance on Social Security income in
older, presenting the proportion of individuals in aged households with Social Security income older, presenting the proportion of individuals in aged households with Social Security income
that received 50% or more, 75% or more, and 90% or more of household income from Social that received 50% or more, 75% or more, and 90% or more of household income from Social
Security. The figures are disaggregated by age group, educational attainment, household income Security. The figures are disaggregated by age group, educational attainment, household income
quintile, marital status, poverty status, race/ethnicity, and gender.quintile, marital status, poverty status, race/ethnicity, and gender.
nearly one-fifth (one-fifth (
(Figure 13). Other studies using survey data from the Current Population Survey linked with SSA . Other studies using survey data from the Current Population Survey linked with SSA
administrative records and Internal Revenue Service tax records found that 12%-14% of administrative records and Internal Revenue Service tax records found that 12%-14% of
individuals individuals
2015 and 2012.2015 and 2012.
61 Figure 13 shows that reliance on Social Security income in shows that reliance on Social Security income in
those those
Security benefits, and also highlights the importance of Social Security spouse and survivor Security benefits, and also highlights the importance of Social Security spouse and survivor
benefits, particularly for older women.benefits, particularly for older women.
Security for 90% or more of household income in Security for 90% or more of household income in
married individuals, reliance on Social Security for 90% or more of household income in married individuals, reliance on Social Security for 90% or more of household income in
2019 was 30.was 30.
school diploma but no college education relied on Social Security for 90% or more of household school diploma but no college education relied on Social Security for 90% or more of household
income in income in
estimates based on household income quintile show that estimates based on household income quintile show that
20% of the household income distribution rely on Social Security for 90% or more of household 20% of the household income distribution rely on Social Security for 90% or more of household
income in income in
Similarly, 58.Similarly, 58.
on Social Security for 90% or more of household income in on Social Security for 90% or more of household income in
non-Hispanic received more than 90% of their household income from Social Security in non-Hispanic received more than 90% of their household income from Social Security in
2019, compared with compared with
who identified as non-Hispanic of other races identified as non-Hispanic of other races
(Figure 13).
Figure 13. Percentage of Individuals
2019 Source: CRS CRS
Notes: Statistics are among individuals 65 and older who had Social Security benefits in household income. Statistics are among individuals 65 and older who had Social Security benefits in household income.
Demographic characteristics are based on the time of the survey. Income is based on amounts received in the Demographic characteristics are based on the time of the survey. Income is based on amounts received in the
include those divorced and separated. HS refers to High School. Poverty status is determined based on the include those divorced and separated. HS refers to High School. Poverty status is determined based on the
definition by U.S. Census Bureau (see definition by U.S. Census Bureau (see
Hispanic. Household income quintile Hispanic. Household income quintile
upper bounds are $24,132, $43,252, $68,480, and $116,252, and the fifth quintile has a lower bound of $116,253 and includes incomes up to the highest value in the data set. All values displayed in the table have been adjusted for population weights provided by the HRS.values displayed in the table have been adjusted for population weights provided by the HRS.
Individuals
Table A-1. Percentage of Individuals
2019
Household Income Among Individuals with Income ($)
Income
Sources Share with
Income
25th Percentile
50th Percentile or Median
75th Percentile
Average
Total
99.7%
28,850
55,000
101,440
85,343
Social Security
91.9%
16,162
24,115
34,266
25,525
Retirement Retirement
58.7%
7,294
19,644
40,800
32,742
Pensions
43.8%
7,200
17,832
36,000
26,847
Annuities
7.6%
4,000
10,152
23,232
22,663
IRA Withdrawals
28.7%
3,692
8,945
22,652
20,059
Asset Income
55.7%
72
1,332
12,600
18,657
Earnings
37.5%
10,000
36,500
84,000
65,729
Wages and Salaries
31.8%
10,800
35,300
80,000
57,351
Self-employment Income
13.2%
4,600
18,800
50,000
48,725
Public Assistance
7.6%
776
2,160
5,099
3,754
SSI
3.4%
1,800
4,758
9,240
5,980
Other Public Assistance
5.7%
480
1,200
2,280
1,487
Other Income
16.8%
5,220
14,736
35,000
34,444
No. of Observations
8,998
8,998
8,998
8,998
8,998
Population (in thousands)
54,632
54,632
54,632
54,632
54,632
Notes: Asset income includes business income, interest, dividends, and rents. SSI is Supplemental Security Asset income includes business income, interest, dividends, and rents. SSI is Supplemental Security
Income. Other public assistance includes Income. Other public assistance includes
benefits and other welfare income. Other income includes veteran benefits, workersbenefits and other welfare income. Other income includes veteran benefits, workers
unemployment compensation, alimony, child support, and financial assistance from friends or relatives not living unemployment compensation, alimony, child support, and financial assistance from friends or relatives not living
in the same household. All values displayed in the table have been adjusted for population weights provided by in the same household. All values displayed in the table have been adjusted for population weights provided by
the HRS.the HRS.
Table A-2. Percentage of Individuals
2019
All Individuals
Single Persons
Income Sources
Household Income Quintile
Household Income Quintile
1st
2nd
3rd
4th
5th
1st
2nd
3rd
4th
5th
1st
2nd
3rd
4th
5th
Any income
98.3%
100.0%
100.0%
100.0%
100.0%
99.4%
100.0%
100.0%
100.0%
100.0%
96.3%
100.0%
100.0%
100.0%
100.0%
Social Security
91.5%
95.2%
96.0%
93.1%
83.6%
94.6%
98.3%
96.6%
89.1%
82.8%
85.1%
98.2%
95.3%
90.2%
87.4%
18.9%
53.7%
75.0%
76.5%
69.3%
31.5%
70.7%
77.2%
74.9%
66.7%
6.9%
29.9%
60.3%
74.2%
76.0%
Pensions
11.9%
38.6%
56.1%
62.6%
49.7%
20.5%
52.9%
61.4%
60.7%
44.6%
4.0%
20.8%
41.7%
57.4%
59.6%
Annuities
2.0%
4.6%
10.3%
11.0%
9.8%
1.1%
7.1%
9.8%
13.1%
8.4%
1.9%
2.6%
7.5%
9.9%
12.6%
IRA Withdrawals
5.7%
19.5%
33.3%
41.2%
43.9%
12.8%
28.7%
41.4%
40.8%
46.6%
1.2%
7.8%
21.2%
28.5%
40.2%
Asset Income
20.6%
43.1%
60.8%
71.6%
82.6%
30.7%
57.1%
65.5%
73.9%
86.3%
13.1%
27.1%
43.6%
58.8%
77.5%
Earnings
10.5%
23.7%
35.9%
48.6%
68.8%
18.9%
34.8%
43.7%
60.9%
72.3%
5.3%
13.3%
21.4%
32.0%
43.5%
Wages and Salaries
8.1%
19.6%
30.1%
42.0%
59.2%
14.6%
28.6%
38.4%
53.0%
61.9%
4.5%
10.1%
18.5%
27.7%
35.4%
Self-employment Income
3.3%
6.8%
9.3%
16.4%
30.1%
6.5%
10.1%
11.9%
22.0%
35.0%
1.0%
4.5%
4.6%
8.1%
14.6%
Public Assistance
26.2%
5.9%
3.4%
1.9%
0.8%
13.7%
4.3%
1.7%
1.2%
0.3%
39.3%
17.3%
4.1%
3.3%
2.5%
SSI
12.5%
1.9%
1.1%
0.8%
0.5%
7.4%
1.4%
0.7%
0.6%
0.3%
21.5%
2.6%
1.3%
1.4%
1.1%
Other Public Assistance
20.3%
4.4%
2.4%
1.1%
0.3%
9.6%
3.1%
1.0%
0.6%
0.0%
29.7%
15.8%
3.2%
1.9%
1.5%
Other Income
4.1%
12.8%
18.6%
22.2%
26.5%
8.9%
16.3%
23.7%
21.4%
28.5%
3.1%
4.5%
11.6%
18.0%
22.2%
No. of Observations
2,355
2,046
1,662
1,563
1,256
1,382
1,046
1,009
863
738
909
841
777
710
607
Weighted Population (in thousands)
10,928
10,927
10,936
10,915
10,926
6,854
6,840
6,853
6,847
6,835
4,086
4,080
4,086
4,073
4,079
Source: CRS analysis of data from the 2020 Health and Retirement Study (HRS).
Notes: Asset income includes business income, interest, dividends, and rents. SSI is Supplemental Security Income. Other government transfers include dollars worth of Supplemental Nutrition Assistance Program benefits and other welfare income. Other income includes workers' compensation, unemployment compensation, alimony, child support, and financial assistance compensation, unemployment compensation, alimony, child support, and financial assistancefrom friends or relatives not living in the same household. Household income quintile from friends or relatives not living in the same household. Household income quintile
adjusted for population weights provided by the HRS.adjusted for population weights provided by the HRS.
Table A-3. Percentage of Aggregate Income from Each Income Source Among Individuals
2019
All Individuals
Income Sources
Household Income Quintile
1st
2nd
3rd
4th
5th
1st
2nd
3rd
4th
5th
1st
2nd
3rd
4th
5th
All income
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Social Security
82.6%
63.5%
46.1%
30.5%
11.4%
78.9%
60.6%
41.7%
26.2%
10.9%
80.7%
84.8%
64.1%
38.5%
15.9%
Retirement Retirement
Savings
5.6%
18.5%
27.3%
31.9%
21.9%
8.6%
21.2%
29.3%
31.1%
19.7%
1.9%
6.9%
18.8%
30.7%
30.3%
Pensions
3.9%
13.7%
18.8%
21.9%
11.5%
5.8%
15.3%
21.0%
20.3%
9.3%
1.2%
5.4%
12.9%
22.5%
19.8%
Annuities
0.6%
1.3%
2.1%
1.9%
2.7%
0.2%
1.5%
1.4%
2.6%
1.6%
0.6%
0.7%
2.0%
2.2%
3.3%
IRA Withdrawals
1.0%
3.5%
6.4%
8.1%
7.7%
2.6%
4.5%
6.9%
8.2%
8.8%
0.2%
0.8%
3.9%
6.0%
7.3%
Asset Income
1.2%
3.7%
6.4%
9.5%
16.7%
1.7%
3.6%
5.5%
9.2%
17.0%
1.0%
1.4%
4.0%
8.0%
20.0%
Earnings
3.8%
9.6%
14.2%
22.2%
41.5%
6.5%
10.4%
16.1%
29.1%
43.6%
1.5%
4.2%
8.3%
15.8%
24.4%
Wages and Salaries
2.9%
7.8%
12.3%
17.9%
26.6%
5.2%
9.2%
13.3%
23.7%
27.8%
1.3%
3.1%
6.6%
13.1%
17.5%
Self-employment Income
0.9%
1.8%
1.9%
4.2%
14.9%
1.3%
1.2%
2.8%
5.4%
15.8%
0.1%
1.0%
1.7%
2.7%
6.9%
Public Assistance
5.6%
0.6%
0.3%
0.1%
0.0%
1.8%
0.3%
0.1%
0.1%
0.0%
13.8%
1.8%
0.7%
0.5%
0.1%
SSI
3.7%
0.4%
0.2%
0.1%
0.0%
1.2%
0.2%
0.1%
0.1%
0.0%
9.9%
0.7%
0.4%
0.4%
0.1%
Other Public Assistance
1.8%
0.2%
0.1%
0.0%
0.0%
0.6%
0.1%
0.0%
0.0%
0.0%
3.9%
1.0%
0.2%
0.1%
0.0%
Other Income
1.2%
4.0%
5.7%
5.7%
8.4%
2.5%
3.9%
7.2%
4.4%
8.8%
1.1%
1.1%
4.1%
6.5%
9.2%
No. of Observations
2,355
2,046
1,662
1,563
1,256
1,382
1,046
1,009
863
738
909
841
777
710
607
Population (in thousands)
10,928
10,927
10,936
10,915
10,926
6,854
6,840
6,853
6,847
6,835
4,086
4,080
4,086
4,073
4,079
Notes: Asset income includes business income, interest, dividends, and rents. SSI is Supplemental Security Income. Other government transfers include Asset income includes business income, interest, dividends, and rents. SSI is Supplemental Security Income. Other government transfers include
from friends or relatives not living in the same household. Household income quintile from friends or relatives not living in the same household. Household income quintile
adjusted for population weights provided by the HRS. Sum of components may not equal 100% due to rounding.adjusted for population weights provided by the HRS. Sum of components may not equal 100% due to rounding.
Table A-4. Percentage of Individuals
2019
All Individuals
Married/Partnered
Income Sources
Hispanic
Hispanic
Hispanic
Any Income
100.0%
99.6%
99.9%
98.1%
100.0%
99.9%
99.8%
99.1%
99.7%
98.7%
100.0%
96.3%
Social Security
92.5%
92.9%
91.3%
88.5%
92.3%
96.3%
89.3%
90.3%
92.1%
89.8%
94.1%
85.5%
Pensions and Retirement Savings
65.2%
38.5%
48.2%
28.1%
68.9%
45.4%
60.2%
33.7%
57.6%
33.3%
31.6%
20.0%
Pensions
47.9%
32.9%
36.0%
22.7%
51.1%
38.2%
43.6%
27.5%
41.7%
29.0%
25.5%
15.7%
Annuities
8.5%
4.2%
6.0%
3.1%
8.5%
5.5%
9.5%
3.5%
8.5%
3.2%
1.2%
2.5%
IRA Withdrawals
33.9%
7.8%
21.3%
8.3%
38.1%
12.1%
30.9%
11.0%
25.5%
4.8%
7.9%
4.2%
Asset Income
64.1%
25.1%
49.0%
17.6%
69.2%
33.8%
57.9%
22.2%
54.1%
18.7%
36.5%
10.9%
Earnings
38.8%
33.3%
37.7%
32.2%
47.0%
46.0%
41.6%
39.2%
22.5%
24.1%
32.2%
22.0%
Wages and Salaries
32.8%
29.7%
31.3%
26.8%
39.8%
41.8%
38.1%
32.8%
18.9%
20.8%
21.8%
17.9%
Self-employment Income
14.1%
9.2%
12.5%
10.3%
17.8%
13.6%
11.5%
13.8%
6.5%
6.1%
13.8%
5.2%
Public Assistance
4.9%
18.6%
11.4%
19.5%
2.9%
10.0%
4.5%
12.8%
8.4%
24.3%
21.0%
29.1%
SSI
1.6%
9.3%
6.2%
11.8%
1.1%
4.9%
3.5%
9.0%
2.6%
12.3%
10.0%
15.9%
Other Public Assistance
3.8%
13.0%
8.3%
13.6%
2.0%
6.6%
1.4%
8.8%
7.1%
17.2%
17.8%
20.6%
Other Income
17.9%
14.2%
20.7%
8.8%
20.4%
20.5%
25.6%
11.5%
13.3%
9.6%
13.9%
4.9%
No. of Observations
5,872
1,606
267
1,246
3,506
652
157
740
2,354
954
110
502
Weighted Population (in thousands)
42,995
5,037
1,682
4,895
28,209
2,118
977
2,899
14,664
2,918
705
1,988
Source: CRS analysis of data from the 2018 Health and Retirement Study (HRS).
Notes: Asset income includes business income, interest, dividends, and rents. SSI is Supplemental Security Income. Other government transfers include dollars worth of Supplemental Nutrition Assistance Program benefits and other welfare income. Other income includes workers' compensation, unemployment compensation, alimony, child support, and financial assistance compensation, unemployment compensation, alimony, child support, and financial assistancefrom friends or relatives not living in the same household. All values displayed in the table have been adjusted for population weights provided by the HRS.from friends or relatives not living in the same household. All values displayed in the table have been adjusted for population weights provided by the HRS.
2019
All Individuals
Income Sources
Hispanic
Hispanic
Hispanic
Any Income
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Social Security
28.0%
40.5%
30.3%
44.0%
25.4%
36.9%
28.8%
40.7%
34.0%
43.7%
32.5%
49.4%
Pensions and Retirement Savings
24.6%
20.7%
24.8%
12.6%
23.4%
18.9%
30.9%
12.9%
27.2%
22.4%
16.2%
12.2%
Pensions
14.9%
16.4%
16.4%
9.8%
13.6%
14.7%
19.7%
10.3%
18.0%
18.0%
11.7%
8.9%
Annuities
2.0%
2.5%
1.5%
0.9%
1.7%
1.2%
2.5%
0.8%
2.6%
3.6%
0.1%
1.0%
IRA Withdrawals
7.6%
1.8%
6.9%
1.9%
8.1%
3.0%
8.7%
1.8%
6.6%
0.8%
4.4%
2.2%
Asset Income
13.1%
2.8%
9.9%
5.8%
12.4%
3.2%
11.2%
5.1%
14.8%
2.5%
8.1%
6.8%
Earnings
27.2%
27.5%
24.8%
30.3%
31.9%
32.1%
19.0%
34.7%
16.1%
23.2%
33.0%
23.1%
Wages and Salaries
18.8%
22.4%
18.2%
25.2%
21.7%
26.3%
17.2%
28.2%
11.9%
18.8%
19.5%
20.1%
Self-employment Income
8.4%
5.1%
6.7%
5.2%
10.2%
5.8%
1.8%
6.4%
4.2%
4.4%
13.5%
3.1%
Public Assistance
0.2%
2.1%
0.6%
2.8%
0.1%
0.6%
0.3%
1.3%
0.5%
3.5%
1.0%
5.4%
SSI
0.1%
1.5%
0.3%
2.2%
0.1%
0.4%
0.2%
1.0%
0.3%
2.5%
0.5%
4.1%
Other Public Assistance
0.1%
0.6%
0.2%
0.7%
0.0%
0.2%
0.0%
0.3%
0.2%
1.0%
0.5%
1.3%
Other Income
6.9%
6.4%
9.5%
4.5%
6.8%
8.4%
9.8%
5.3%
7.4%
4.6%
9.2%
3.1%
No. of Observations
5,872
1,606
267
1,246
3,506
652
157
740
2,354
954
110
502
42,995
5,037
1,682
4,895
28,209
2,118
977
2,899
14,664
2,918
705
1,988
Notes: Asset income includes business income, interest, dividends, and rents. SSI is Supplemental Security Income. Other government transfers include Asset income includes business income, interest, dividends, and rents. SSI is Supplemental Security Income. Other government transfers include
from friends or relatives not living in the same household. All values displayed in the table have been adjusted for population weights provided by the HRS. Sum of from friends or relatives not living in the same household. All values displayed in the table have been adjusted for population weights provided by the HRS. Sum of
components may not equal 100% due to rounding.
CRS Research Assistant Joe Angert contributed to the data analysis in this report.
Footnotes
Social Security Board of Trustees, The 2025 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, 2025, Table V.A5, https://www.ssa.gov/OACT/TR/2025/V_A_demo.html#228705 (hereinafter, "Social Security 2025 Annual Report"). The estimates are cohort life expectancy under the trustees' intermediate assumptions. The cohort life expectancy at a given age for a given year is the average remaining number of years expected prior to death for a person at that exact age, born on January 1, using the mortality rates for the series of years in which the individual will actually reach each succeeding age if he or she survives.
See U.S. Census Bureau, 2017 National Population Projections Datasets, Table 1, https://www.census.gov/data/datasets/2017/demo/popproj/2017-popproj.html.
See CRS Report R42035, Social Security Primer, by Barry F. Huston.
See CRS In Focus IF10482, Supplemental Security Income (SSI), by William R. Morton.
See CRS Report 98-810, Federal Employees' Retirement System: Benefits and Financing, by Katelin P. Isaacs, and CRS Report 98-972, Federal Employees' Retirement System: Summary of Recent Trends, by Katelin P. Isaacs.
Examples include the Employee Retirement Income Security Act (P.L. 93-406) and the Revenue Act of 1978 (P.L. 95-600).
OMB, Budget of the United States Government, Fiscal Year 2025: Analytical Perspectives, Table 13-1, https://primarynewssource.org/wp-content/uploads/spec_fy2025.pdf. Other large tax expenditures in the federal budget may include the exclusion of employer contributions for medical insurance premiums and medical care. Congress also allows taxpayers age 65 and older to claim an additional standard deduction on their income tax returns. This deduction will reduce federal tax revenues by an estimated $8.7 billion in FY2025.
See CRS In Focus IF10522, Social Security's Funding Shortfall, by Barry F. Huston.
Social Security 2025 Annual Report.
See CRS Report R43615, Social Security: Minimum Benefits, by Zhe Li.
See CRS Report R43439, Worker Participation in Employer-Sponsored Pensions: Data in Brief and Recent Trends, by John J. Topoleski, Elizabeth A. Myers, and Sylvia L. Bryan.
See CRS Report R43439, Worker Participation in Employer-Sponsored Pensions: Data in Brief and Recent Trends, by John J. Topoleski, Elizabeth A. Myers, and Sylvia L. Bryan.
Government Accountability Office, Retirement Security: Income and Wealth Disparities Continue Through Old Age, GAO-19-587, August 2019.
Adam Bee and Joshua Mitchell, Do Older Americans Have More Income Than We Think?, Census Bureau, SESHD Working Paper no. 2017-39, July 2017, https://www.census.gov/content/dam/Census/library/working-papers/2017/demo/SEHSD-WP2017-39.pdf.
Jeffrey Thompson and Alice Henriques Volz, A New Look at Racial Disparities Using a More Comprehensive Wealth Measure, Federal Reserve Bank of Boston, Current Policy Perspective, August 16, 2021.
Individuals with the same cash income may have different levels of financial assets or wealth, home ownership, and non-cash benefits from government transfer programs (such as school lunch, Medicaid, and Low-Income Home Energy Assistance Program), which are also factors that affect a person's economic well-being. This report does not address these other factors. In addition, this report does not discuss the question of retirement adequacy or whether the income level is sufficient to meet retirement needs.
ISR, "The Health and Retirement Study: Aging in the 21st Century," January 2017, https://hrsonline.isr.umich.edu/sitedocs/databook/inc/pdf/HRS-Aging-in-the-21St-Century.pdf.
RAND, "RAND HRS Data Products," https://www.rand.org/well-being/social-and-behavioral-policy/centers/aging/dataprod.html. See also ISR, "RAND HRS Data Products," https://hrsdata.isr.umich.edu/data-products/rand.
ISR, "HRS Restricted Data," https://hrs.isr.umich.edu/data-products/restricted-data.
Peter V. Miller, "Is There a Future for Surveys?" Public Opinion Quarterly, vol. 81, issue S1, April 2017, https://academic.oup.com/poq/article-pdf/81/S1/205/13942332/nfx008.pdf. Paul S. Davies and T. Lynn Fisher, "Measurement Issues Associated with Using Survey Data Matched with Administrative Data from the Social Security Administration," Social Security Bulletin, vol. 69, no. 2, 2009, https://www.ssa.gov/policy/docs/ssb/v69n2/v69n2p1.html.
Population weights are used to produce estimates that represent the population as a whole. Estimates computed using different survey samples will likely differ from one another and from the "true" population value, even when the samples are drawn from the same population. The margin of error is a measure of an estimate's variability due to sampling. The larger the margin of error is in relation to the size of the estimate, the less reliable is the estimate. The HRS, although matched with administrative records for a certain percentage of the sample, likely contains nonsampling error—error due to causes other than the fact that a sample was used in place of the entire population (for instance, respondents misremembering or misreporting income amounts, respondents failing to answer the questionnaire, or errors during the processing of the data file).
In the HRS, married individuals include those married and partnered.
This report uses Social Security benefits prior to the deduction of the Medicare Part B and/or Part D premiums. For respondents with administratively matched records, the Social Security benefit amount before those deductions was used; for observations where matched data are not available, Medicare Part B and/or Part D premiums were added in instances when the respondent had deducted these amounts from reported Social Security benefits.
This report includes IRA withdrawals as part of the income source for pensions and retirement savings, since they are treated as income for taxation purposes.
The HRS collects information about the "dollars worth" of SNAP benefits, which are included in the income sources. SNAP, formerly called the Food Stamp Program, is designed primarily to increase the food purchasing power of eligible low-income households to help them buy a nutritionally adequate low-cost diet. For more information about SNAP, see CRS Report R42505, Supplemental Nutrition Assistance Program (SNAP): A Primer on Eligibility and Benefits, by Randy Alison Aussenberg and Gene Falk.
The median household income lies at the middle of the household income distribution. Half of individuals have higher household income, and half have lower household income. The average household income is generally higher than the median household income because a relatively small percentage of individuals have very high amounts of household income. The median is therefore widely considered to be a more accurate measure of the household income of a "typical" individual.
T. Lynn Fisher, "The Impact of the Unit of Observation on the Measurement of the Relative Importance of Social Security Benefits to the Elderly," Social Security Bulletin, vol. 67, no. 2 (2007).
See CRS Report R41479, Social Security: Revisiting Benefits for Spouses and Survivors, by Zhe Li.
See CRS In Focus IF10482, Supplemental Security Income (SSI), by William R. Morton.
Other income includes veteran benefits, workers' compensation, unemployment compensation, alimony, child support, and financial assistance from friends or relatives not living in the same household.
See CRS Report R42035, Social Security Primer, by Emma K. Tatem.
An estimated 94% of workers worked in paid employment or self-employment covered by Social Security, and their earnings are subject to the Social Security payroll tax. Employers and employees each pay 6.2% of covered earnings, up to an annual limit on taxable earnings ($176,100 in 2025). For more information, see SSA, Fact Sheet on the Old-Age, Survivors, And Disability Insurance Program, February 2025, https://www.ssa.gov/OACT/FACTS/fs2024_12.pdf.
A worker may earn up to four earnings credits per calendar year. In 2025, a worker earns one credit for each $1,810 of covered earnings, up to a maximum of four credits for covered earnings of $7,240 or more. Fewer earnings credits are needed to qualify for a disabled-worker benefit; the number needed varies depending on the age of the worker when he or she became disabled. Earnings credits are also called quarters of coverage.
See CRS Report R44670, The Social Security Retirement Age, by Zhe Li.
Other types of dependents can claim benefits before the age of 62. Widow(er)'s benefits can be claimed as early as age 60; disabled widow(er)'s benefits can be claimed as early as age 50. These benefits are also subject to reduction if claimed before the FRA. There is no minimum eligibility age for dependent child's benefits. Disability benefits are not reduced for claiming age relative to the FRA.
Upon reaching the FRA, disabled-worker beneficiaries are converted automatically to the Old-Age and Survivors Insurance program, and begin receiving unreduced Social Security retired-worker benefits.
The total amount of Social Security benefits payable to a family based on a retired, disabled, or deceased worker's record is capped by the maximum family benefit. Social Security Act, Title II, §203. For more information, see CRS Report R42035, Social Security Primer, by Barry F. Huston.
For discussion of the population not covered by Social Security, see CRS In Focus IF11824, Social Security: Who Is Covered Under the Program?, by Paul S. Davies.
See CRS Report R47119, Pensions and Individual Retirement Accounts (IRAs): An Overview, coordinated by Elizabeth A. Myers, and CRS Report RS22350, Railroad Retirement Board: Retirement, Survivor, Disability, Unemployment, and Sickness Benefits, by Zhe Li.
DB pension plans in the private sector are generally funded entirely by employer contributions. In contrast, many public-sector pension plans require employee contributions.
An employee may contribute up to $23,500 ($31,000 if age 50 or older) per year to a 401(k) plan in 2025. The contribution limit is adjusted annually for increases in the national wage. Some DC plans can be funded solely by employers. Contributions in Roth 401(k) accounts are after-tax. For more information, see U.S. Department of the Treasury, Internal Revenue Service, 2025 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living, https://www.irs.gov/pub/irs-drop/n-24-80.pdf.
After reaching a specified age or inheriting an account, individuals with employer-sponsored DC plans and traditional IRAs generally have to begin taking required minimum distributions (RMDs) from their accounts. Under current law, the RMD is a minimum amount that must be withdrawn each year after the account holder reaches a specified age ranging from 70½ to 73 (depending on date of birth). (In the case of DC plans, account holders can delay taking their RMDs until the year they retire, though exceptions apply for account holders who own more than 5% of the business sponsoring the plan.) Failure to take the RMD results in a tax penalty equal to 25% of the amount that should have been distributed. The penalty is reduced from 25% to 10% for IRA owners who correct the error in a timely manner.
A life annuity—also called an immediate annuity—is an insurance contract that provides guaranteed income payments for life in return for an initial lump-sum premium. A life annuity pays income to the purchaser for as long as he or she lives and, in the case of a joint and survivor annuity, for as long as the surviving spouse lives. Another annuity product, the Advanced Life Deferred Annuity, can be purchased at retirement with a smaller share of accumulated assets and payments beginning at a later age, such as 85. People can also purchase an inflation-adjusted annuity that provides annual increases in income.
The HRS does not distinguish between traditional IRAs and Roth IRAs in the income sources of respondents and their spouses (if any).
Individuals may contribute up to $7,000 ($8,000 if 50 or older) in 2025 to an IRA. The contribution limit is adjusted annually for increases in the national wage. For more information, see CRS Report RL34397, Traditional and Roth Individual Retirement Accounts (IRAs): A Primer, by Elizabeth A. Myers.
See Investment Company Institute, The US Retirement Market, First Quarter 2025, Tables 11 and 12, https://www.ici.org/research/stats/retirement. Rollovers are transfers of assets from one retirement plan to another retirement plan, often upon separation from an employer. Generally, individuals may roll over account balances from employer-sponsored pension plans into traditional or Roth IRAs upon separation from employment.
In the HRS, the Supplemental Nutrition Assistance Program (SNAP) is referred to as Food Stamps, which was the old name of the program. See CRS Report R42505, Supplemental Nutrition Assistance Program (SNAP): A Primer on Eligibility and Benefits, by Randy Alison Aussenberg and Gene Falk.
See CRS In Focus IF10482, Supplemental Security Income (SSI), by William R. Morton.
In 1975, about 10% of the elderly population in the United States received some form of public assistance from the federal or state governments, mainly from SSI. CRS analysis of the Current Population Survey (CPS), 1976 Annual Social and Economic Supplement.
In any given year the rate of price inflation may exceed the rate of growth of average wages. Over long periods, however, wages grow faster than prices because average wages grow at the average rate of inflation plus the rate of growth of labor productivity. Prices will grow faster than wages in the long run only if labor productivity fails to increase.
Poverty status is determined based on the definition by U.S. Census Bureau. See U.S. Census Bureau, "Poverty Thresholds," https://www.census.gov/data/tables/time-series/demo/income-poverty/historical-poverty-thresholds.html; and Delia Bugliari, et al., RAND HRS Longitudinal File 2018 (V2) Documentation, RAND, July 2022, Section "4. Poverty Threshold Definitions and HRS Measures."
Percentages may not add to 100% due to rounding.
In the HRS, other races include those who identified as American Indian, Alaskan Native, Asian, Native Hawaiian, Pacific Islander, and something else.
Dushi and Trenkamp (2021), Table 5. Bee and Mitchell (2017), Table 10.
See CRS Report R41479, Social Security: Revisiting Benefits for Spouses and Survivors.