More kids in America than ever are living with older relatives who receive Social Security — here’s what that means for child poverty

That’s one of the key findings in a 2025 National Bureau of Economic Research study that found that the number of kids living in households with Social Security benefits grew over the same period — from 6.9% to 9.1%.

Social Security outpacing traditional aid for kids

When it comes to financial support for children in lower-income households, the shift is dramatic.

Back in 2000, children in low-income families were 2.5 times more likely to live in households receiving Temporary Assistance for Needy Families (TANF) than in households receiving Social Security benefits.

By 2023, that had changed. More children from lower-income families lived in households collecting Social Security (12.8%) than in households receiving support from TANF (10%).

One factor at play is that TANF participation has fallen over the years due to tougher eligibility requirements and reduced benefits.

In contrast, Social Security isn’t explicitly targeted at children. It’s a broad-based program for retirees, their survivors or disabled individuals. Benefits flow to children indirectly when they live with an eligible adult.

The rise in children living with older adults has occurred across all racial and ethnic groups. Asian children are most likely to live with an older adult, while white children are least likely.

Black and Hispanic children are more likely than others to live with grandparents, though those grandparents tend to be younger than 62.

When it comes to Social Security income benefits, Black children are the most likely to live in such households (13.1% in 2023), followed by Asian (9.9%), Hispanic (8.6%) and white (8.0%) children.

Impact on child poverty modest but real

In general, Social Security accounts for less than 3% of family income. But in families with older adults, especially those with a grandparent caregiver, the share is much higher, and it can reduce the likelihood that children live in deep poverty.

It may also free up older adults’ time for childcare which eases financial strain on parents.

Brookings reports that in 2023: