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The social security level is an important factor during the process of the reformation of social security system. Whether it is fit for the level of the economic development has a crucial impact on the development of the social economy and the stabilization and solidification of our country. Higher or lower social security level influences the development of economics. Based on the Grey system and the new information principle, taking the mean relative error as objective function and taking the modified nth component of each variable as initial value of response function and finding the optimum background value coefficient q and modified value of initial value of response function by optimizing, new information multi-variable optimization Grey model NMGM (1, n, q, r) of the social security level was put forward which is used to check validity with example. Calculation results show that this method is very effective to data processing which has high precision and easy to use. The method has wide applications in social security level fields and other various economic fields.