Industry News

Recently, the National Institute on Retirement Security (NIRS) released its report, Quantifying the Economic Impact of Social Security Benefit Spending. The study analyzed data on Social Security benefit expenditures in 2023 to assess the overall national economic impact of benefits paid to retirees, survivors, disabled Americans, and other beneficiaries. According to the report, Social Security benefits supported 12 million jobs and generated $2.6 trillion in the U.S. economic output during 2023.

Other key findings include:

• In 2023, Social Security benefits of $1.38 trillion were paid to 67 million beneficiaries.
• The expenditures from those benefit payments collectively supported 12.2 million American jobs and paid $804.6 billion in labor income.
• The benefits paid produced $2.6 trillion in total economic output and $1.6 trillion in Gross Domestic Product (GDP) and generated $363 billion in federal, state and local tax revenues.
• Every $1 paid out in Social Security benefits supports $2 in total economic output nationally with the most significant employment impacts in the food services, health care and retail trade sectors.

The report concludes: “As policymakers, advocates, and everyday Americans continue to discuss and debate the future of Social Security, they would do well to keep in mind the economic impact that any changes to the program would have.” 

The report is available here.