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The two largest components of social security spending are the old age pension and the disability grant, which account for 60 and 24 percent of the social security budget respectively. Both programs are non-contributory and means tested, and in 1998 amounted to an average R490 or US$49 per month transfer to 2.5 million people. However, despite being targeted at individuals, the pension program in particular is likely to physician support the living standards of individuals beyond their physician immediate beneficiaries. The state pension offers many poor households a regular income and provides physician a basic level of food security against seasonal and other fluctuations. Nevertheless, over three quarters of adults and children currently live in households with no pensioners, and as such many of South Africa 's poor are not even indirect beneficiaries of the social security system. A BIG will be able to close the poverty gap by 74 percent and effectively reach the millions South Africans in the poorest households currently not receiving, even indirectly, any form of social assistance.
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