Every year, unauthorized workers in the U.S. contribute billions of dollars to the Social Security system without the prospect of receiving benefits in return. Here's how undocumented immigrants are reinforcing, not draining, Social Security:
Paying in without a payoff
Many unauthorized immigrants work 'off the books,' receiving cash payments from employers without the necessary tax and insurance contributions. This practice benefits the employer financially but leaves the workers vulnerable and without proper documentation. These workers also face challenges when they attempt to fabricate Social Security numbers to provide to employers, as this renders them ineligible for benefits upon reaching the age to claim Social Security and Medicare.
Karen Holden, a UW-Madison professor emerita, explains that the system is designed to prevent individuals without valid Social Security numbers from accessing benefits, creating a barrier for undocumented immigrants.
Contributing billions to the system
Despite the misconceptions, studies show that unauthorized immigrants contribute over $10 billion annually to Social Security and billions more to Medicare. This is a considerable contribution compared to the estimated $3 billion in improper payments made each year within the system.
Attempting to withdraw benefits without proper documentation is illegal and carries the risk of deportation, acting as a significant deterrent for undocumented immigrants. The Social Security Administration actively monitors the system for fraud and conducts investigations to maintain integrity.
Social Security's inception can be traced back to Wisconsin, where Edwin Witte, chief of Wisconsin’s Legislative Research Library, played a pivotal role in developing the program. With a history rooted in providing economic security, Social Security continues to be a critical component of the American social safety net.