Economic Class and Redistribution of Income Through Spousal Benefits Under Social Security

Abstract

As the public debates Social Security reform, the provision of spousal benefits will become an important issue. Under the Social Security program, the spouse with lower lifetime earnings is guaranteed at least 50 percent of the benefit of the spouse with higher lifetime earnings. Given the increasing financial problems of the Social Security program, spousal benefits will be scrutinized as a cost-cutting measure. Who benefits from the provision of spousal benefits, and how much? Is there a difference between the spousal benefits that lower-income and higher-income married couples receive? This article presents findings from an empirical study that investigated these questions and discusses their policy implications.