Alaska: Social Security made up 4% of total income in 2022

John Lettieri, President and CEO of Economic Innovation Group - Official Website
John Lettieri, President and CEO of Economic Innovation Group - Official Website
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In 2022, Social Security transfers in Alaska totaled $2.01 billion, amounting to $2,746 per capita, or 19.4% of total government transfers in the state, according to information from the Economic Innovation Group.

Among all government transfer programs, Social Security was the second largest contributor. Medicaid was the largest, totaling $2.49 billion, equating to $3,397 per capita and making up 24% of total transfers.

Medicare was the third largest contributor in Alaska in 2022, accounting for $1.4 billion, averaging $1,903 per capita, and represented 13.4% of transfers in the state. Income Maintenance transfers provided another $1.15 billion, averaging $1,572 per capita and comprising 11.1% of government support, making them the smallest contributors.

Statewide, including all transfer types, government transfer payments totaled $10.38 billion, and accounted for 20.6% of residents’ total income, with an average of $14,153 per resident.

Government transfer payments are non-repayable funds provided by federal, state, or local governments to support individuals in need. These payments aim to stabilize economic conditions and provide financial support during hardships. Key programs include Social Security transfers (retirement benefits), Medicare transfers (healthcare for seniors), Medicaid transfers (healthcare for low-income individuals), and income maintenance transfers (financial assistance for basic needs).

With 13.9% of the population aged 65 and older, Alaska has a demand for programs like Social Security and Medicare. The total per capita income in Alaska, excluding government transfers was $54,482.5, which is noticeably below the county’s total income of $68,635, emphasizing the role of government transfers in overall income.

When comparing 2022 to the previous year, Alaska saw an increase in its Social Security transfer dependency by 0.2%, reflecting both rising transfer amounts and stagnating or insufficient other sources of income.

Government transfers have long been a modest financial safety net, historically comprising only a small fraction of Americans’ income. However, since the 1970s—sometimes dubbed the “Great Transfer-mation”—dependency has surged from 8.2% (or $2,022 per capita in inflation-adjusted 2022 dollars) in 1970 to 17.6% (or $11,542 per capita) in 2022 nationwide. In Alaska, reliance on government transfers has similarly increased from 3.7% (or $1,267 per capita) in 1970 to 20.6% (or $14,153 per capita) in 2022, reflecting broader national trends.

According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.

Breakdown of Government Transfers by Program in Alaska, 2022

2022 Alaska County Rankings and Government Transfer Dependency Metrics
County Rank Dependency on Transfers (%) % Population 65+ Social Security Transfers (%) Medicare Transfers (%) Medicaid Transfers (%) Income Maintenance Transfers (%) Per Capita Transfers ($)
Anchorage Municipality 1 18.8% 12.9% 3.6% 2.3% 4.7% 2% $14,211
Matanuska-Susitna Borough 2 20.1% 13.7% 4.8% 3.3% 1.6% 2% $11,653
Fairbanks North Star Borough 3 19.8% 12.7% 3.5% 2% 5% 1.8% $13,388
Kenai Peninsula Borough 4 25.4% 20% 6.7% 5% 4.4% 2.2% $15,546
Juneau City and Borough 5 15.4% 16.2% 3.5% 2.8% 2.7% 1.3% $12,125
Bethel Census Area 6 37.9% 8.6% 2.8% 2% 17.1% 9.1% $18,453
Ketchikan Gateway Borough 7 22.3% 18.4% 4.9% 3.8% 5.8% 2.2% $16,250
Nome Census Area 8 33.1% 8.8% 2.7% 3.2% 15.4% 6.5% $20,529
Kodiak Island Borough 9 19.5% 14% 3.6% 3.2% 4.5% 1.7% $13,937
Northwest Arctic Borough 10 39.7% 9.2% 2.8% 3.3% 20.8% 6.8% $21,940
Kusilvak Census Area 11 52.7% 7% 3% 3.2% 21.5% 16% $19,331
Yukon-Koyukuk Census Area 12 41.8% 18% 4.2% 3.2% 21.6% 7.1% $27,183
Sitka City and Borough 13 17.8% 18.3% 4.1% 4.2% 3.2% 1.2% $14,256
Southeast Fairbanks Census Area 14 26.7% 15.7% 5.4% 3.6% 6.7% 2.9% $16,143
North Slope Borough 15 12.1% 7.9% 1.7% 2.2% 3.5% 1.6% $9,058
Prince of Wales-Hyder Census Area 16 30.5% 20.7% 6.4% 5.4% 7.8% 2.9% $16,210
Chugach Census Area 17 16% 16.6% 3.7% 1.8% 3.4% 1.4% $11,312
Dillingham Census Area 18 26.5% 11.9% 3.3% 4.2% 8% 5.4% $16,165
Petersburg Borough 19 27.6% 21.9% 6.4% 6.7% 6.4% 1.8% $20,214
Denali Borough 20 27.2% 13.5% 3% 1.6% 15.8% 2.3% $32,870
Wrangell City and Borough 21 35.3% 28.8% 8.3% 8.6% 8.4% 1.9% $21,540
Haines Borough 22 25.3% 25.7% 6% 5.7% 5.5% 1.8% $21,659
Hoonah-Angoon Census Area 23 28.9% 26.2% 5.7% 4.4% 10% 2.3% $19,323
Copper River Census Area 24 23.8% 20.1% 7.1% 1.8% 4.8% 2.9% $14,302
Aleutians West Census Area 25 7.9% 7.2% 1.2% 1% 2.6% 0.9% $5,483
Lake and Peninsula Borough 26 27.3% 13.9% 3.1% 4.1% 10.1% 5.1% $18,355
Aleutians East Borough 27 7% 9.2% 1.6% 1% 1.4% 1.1% $4,487
Skagway Municipality 28 18.4% 19.5% 3.7% 3% 2.6% 0.8% $13,898
Bristol Bay Borough 29 9.6% 18.2% 2% 1.2% 2.8% 1.1% $15,040
Yakutat City and Borough 30 22.9% 20.9% 4.4% 3.2% 7.4% 2% $14,644


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