In 2022, Social Security transfers in Mercer County totaled $1.4 billion, amounting to $3,673 per capita, or 32.9% of total government transfers, according to information from the Economic Innovation Group.
Among all government transfer programs, Social Security was the largest contributor in the county. Medicare was the second largest contributor, totaling $1.01 billion, equating to $2,643 per capita and making up 23.7% of total transfers.
Comparatively, Social Security transfers across New Jersey amounted to $34.56 billion, ranking highest among all transfer types within the state. This translates to an average of $3,732 per capita, or 33.6% of total government transfers. Including all transfer types, government transfer payments totaled $102.93 billion, accounting for 14.4% of residents’ total income, with an average of $11,114 per resident.
Medicaid was the third largest contributor in Mercer County in 2022, accounting for $951.47 million, averaging $2,499 per capita, representing 22.4% of transfers. Income Maintenance transfers provided another $527.92 million, averaging $1,387 per capita and comprising 12.4% of government support, making them the smallest contributors.
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 16.1% of the population aged 65 and older, Mercer County has a significant demand for programs like Social Security and Medicare. Despite this aid, the total per capita income in Mercer County, excluding government transfers was $68,182, which is below the county’s total income of $79,354, emphasizing the role of government transfers in overall income.
When comparing 2022 to the previous year, Mercer County saw an increase in its Social Security transfer dependency by 0.3%, 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 Mercer County, reliance on government transfers has similarly increased from 6.9% (or $2,001 per capita) in 1970 to 14.1% (or $11,172 per capita) in 2022.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| County | Rank | Dependency on Transfers (%) | % Population 65+ | Social Security Transfers (%) | Medicare Transfers (%) | Medicaid Transfers (%) | Income Maintenance Transfers (%) | Per Capita Transfers ($) |
|---|---|---|---|---|---|---|---|---|
| Essex County | 1 | 16% | 14.3% | 3.6% | 3.1% | 5.3% | 2.7% | $12,171 |
| Bergen County | 2 | 10.2% | 18.3% | 4% | 2.9% | 1.5% | 0.6% | $9,880 |
| Ocean County | 3 | 22.6% | 22.6% | 8.8% | 6.8% | 3.4% | 1.6% | $13,433 |
| Middlesex County | 4 | 13.2% | 16.2% | 4.7% | 3.5% | 2.4% | 1.2% | $9,390 |
| Monmouth County | 5 | 12.1% | 19.1% | 4.8% | 3.5% | 2% | 0.7% | $11,460 |
| Hudson County | 6 | 13.7% | 12.8% | 2.7% | 2.7% | 4.6% | 2.3% | $9,947 |
| Camden County | 7 | 21.7% | 16.5% | 6.2% | 5% | 5.8% | 2.8% | $13,093 |
| Passaic County | 8 | 21.3% | 16% | 5.6% | 4.7% | 5.9% | 3.4% | $12,169 |
| Union County | 9 | 13.1% | 15.2% | 4.1% | 2.9% | 3.3% | 1.5% | $10,020 |
| Burlington County | 10 | 15.7% | 18.3% | 6.1% | 4.1% | 2.4% | 1.1% | $11,049 |
| Morris County | 11 | 8.3% | 18.2% | 3.6% | 2.4% | 1.1% | 0.4% | $9,303 |
| Mercer County | 12 | 14.1% | 16.1% | 4.6% | 3.3% | 3.1% | 1.7% | $11,172 |
| Atlantic County | 13 | 24.2% | 19.8% | 7.9% | 5.9% | 5.3% | 2.9% | $13,548 |
| Gloucester County | 14 | 17.2% | 16.8% | 6.6% | 4.6% | 2.5% | 1.5% | $10,743 |
| Somerset County | 15 | 7.8% | 17.1% | 3.4% | 2% | 1.1% | 0.5% | $8,613 |
| Cumberland County | 16 | 30.5% | 16% | 8.1% | 7.2% | 8.3% | 4.8% | $14,279 |
| Cape May County | 17 | 23.5% | 29.6% | 9% | 6.2% | 4.4% | 1.6% | $16,805 |
| Sussex County | 18 | 15.1% | 18.9% | 6.5% | 4.4% | 1.8% | 0.8% | $10,833 |
| Hunterdon County | 19 | 10.1% | 20.9% | 4.8% | 2.9% | 1% | 0.4% | $10,283 |
| Warren County | 20 | 18.5% | 19.7% | 7.3% | 5.2% | 2.9% | 1.3% | $11,639 |
| Salem County | 21 | 26% | 19.3% | 8.8% | 6% | 6.1% | 2.9% | $14,102 |
