Social Security's Critical Role in Rural America

Social Security, which provides a base of economic stability for more than 70 million Americans, is especially important in rural America—home to one-fifth of the nation’s residents. Rural residents rely more heavily on Social Security income than urban residents do, making Social Security a significant economic engine locally. Any cuts to Social Security would therefore disproportionately harm rural communities and their residents. This In Brief explains why Social Security is so significant to rural America and how it is helping rural America respond to two important trends: larger concentrations of older residents and less access to employer-provided retirement plans, including pensions. Read the full report.

Key Takeaways

• Only 40% of full‑time private‑sector workers in rural areas have access to employer retirement plans, compared to 50% in urban areas.
  
• From 2000 to 2022, the share of rural residents age 65-plus rose from 15% to 20%, compared to 12.5% to 16% in urban areas.
  
• Supporting an estimated $1.6 trillion in GDP and 12.2 million jobs nationally, Social Security payments make up a significant share of the local economy in many rural counties.
  
• Every dollar in Social Security benefits supports about $2 in total economic activity, generating jobs and tax revenue for a local economy.