Nationwide survey of the financial and material circumstances of over 65-year-olds to find out the extent to which the rates of social security benefits for this group were consistent with the goal of enabling beneficiaries to live in dignity and comfort. The survey interviewed 2,303 participants, a sample that showed a satisfactory “fit” with the aged population in terms of age and location but had small differences with respect to sex, marital status, and benefit type. There were no references to ethnicity or race. Twenty-four percent of the sample were experiencing “some difficulty” or “considerable difficulty”. Eighteen percent thought their income satisfied their needs “not very well” or “badly”. For the purpose of subsequent analysis these respondents were classed as being in hardship. There was a much greater tendency for hardship to be experienced by those on the age benefit or war veteran’s allowance than those on the superannuation benefit. The results implied that income is not the sole determinant of material wellbeing as even some within the higher income groups experienced hardship. As such, any across the board increase in the basic social security rate would need to be very considerable to have a substantial impact on the incidence of hardship and would disperse funds without regard to need. Policy recommendations for decreasing hardship amongst aged beneficiaries included modifying the eligibility for supplementary assistance or replacing it with provisions for directing assistance to those in need. Of the various schemes examined, the “additional benefit” scheme was adopted and announced in the Government’s 1975 Budget. The authors concluded that this selective approach, aimed directly at those in hardship, was the most appropriate solution.