The words "Social Security" have been heard by many whether it be from the news, grandparents, school, or personal experience. Social Security is a United States program that aims to help older or disabled persons and the families of older, disabled, and deceased persons (SSA, 2005). Franklin D. Roosevelt was the president who enacted the Social Security Act in 1935, however taxes were not collected until two years afterwards and periodic monthly benefits did not start up until 1940. Social Security was intended to be a retirement program when it was first passed into law in the year 1935. The reason that the program was first aimed to help older Americans is because of the worry that the post Great Depression era had for them. The program …show more content…
Medicare taxes go into funds that then pay for the costs of Medicare related programs. Social Security does not work as a pay-as-you-go because the benefits you receive are not dependent on current receipts, but rather a formula (SSA, 2005). Although most people apply for these monthly benefits after retirement, Social Security is not meant to be a singular source of an income. In spite of the fact that Social Security was not designed to be the only source of income for retirees, this often the case due to a lack of personal savings. Social Security was created to force Americans to save money for retirement. Even though Social Security does provide financial aid to retirees, one should aim to have personal savings and investments in order to have a worry-free retirement. In fact, one can continue to work while receiving retirement benefits which can actually increase benefits. While it is typical to begin retirement at age 67, there is also an option to retire early at age 62. Retiring early at 62 would result in a decrease in the amount of the monthly benefit, however. Likewise, one can also choose to retire late leading to an increase in monthly benefit (SSA, 2005). Another group that is eligible obtain benefits from Social Security are families of deceased workers. A one-time payment may be available to one 's family if eligible, this payment is comprised of $255. The surviving spouse may
The Social Security system is perhaps the most successful government social insurance program in the nation 's history; and began with the Social Security Act in 1935. Social Security is a needed federal system that encourages income stability to millions of people across the United States. This is accomplished by giving a stable flow of income to replenish lost wages that occur as a result of disability, retirement, or death of a family member. There are about 59 million people in the U.S. that receive Social Security. Most of them are the required 65 years of age or older. Sadly about half of the 59 million people rely solely on Social Security to pay their bills and everyday necessities.
After looking a at the social security video I learned that, social security is a financial safety net for people in their families. I also learned that FICA and OSDI represents social security taxes. The law requires employers to match the amount of social security taxes that an employee pays into the social security trust fund. The trust fund is the money that is received from the FICA tax dollars. 85 percent of every social security tax dollars paid, goes into a trust fund that pays current retirees, widows, widowers, and any eligible family members of retirees who have worked and died. The other 15 percent goes to pay people with disabilities and their eligible family members.
Social Security, as we know it today, began as the “Economic Security Act” in 1935, and it wasn’t until later that activist Abraham Epstein coined the phrase “Social Security”. In its earliest form, the government paid benefits only to the primary worker in the household, but in 1939 the act was rewritten to include survivor’s benefits for spouses and children. The very first recipient of social security received 17 cents, paid to him in January 1937. The first person to receive monthly benefits began to do so in 1940. In the three prior years, this person had contributed a total of $24.75. By the time of her death in 1975 (at the age of 100) she had collected $22,889 (http://people.howstuffworks.com/social-security-number6.htm). By contrast, the first person to ever be issued a social security number (in 1936) died in 1974 at the age of 61 without ever receiving a single social security payment (however, his widow did). This is the “math” of social security and it doesn’t always add up in a logical way.
In August of 1935 the federal Government created the social security act to help the disabled and elderly population that could no longer work. Social security act was part of several acts that fell under the New Deal programs under President Franklin D. Roosevelt that helped get America through the Great Depression. “Social security is the largest US federal program and the most enduring legacy of the New Deal” (Beland 1). From February 3, 2015 to February 12, 2015 there have been 8 people convicted of social security fraud totaling over 690,000 dollars (Office of the Inspector General). Today the Office of the Inspector General for the SSA (social security administration) website list the many different categories that fall under social security fraud, but I will cover just a few of these. The first is where individuals continue to collect SSA payments after one of their parents passes away. Second are people who use a deceased person’s social security number to collect SSA payments. Third are people who make false claims saying they are injured and can no longer work or making false statements in a claim to make their injuries to be worse than they were. There are three ways this third group can fraud the SSA: this includes returning back to work without reporting it to SSA and still collecting payments; work at jobs that pay cash; or acquiring a fake social security number so they can return to work without alerting the SSA about their employment. These people are not
The Social Security System runs on the laborer contribution to the trust fund. For the example, when individuals are working, he or she required to contribute into the Social Security Fund: so later in their life when it's their time to retire, they can receive benefits from the social security fund. It has been helping retirees to meet their monthly expenses. The social security policy is a successful intergenerational program that has been serving American aging people for many years. Although, since 2010, the social security trust fund has been paying out more than what they receive through employees. Which is why many experts predict that system will work till 2037.
The Social Security act was put into place to help the people over the age of 65 to live life with a supplement after they retire. The money taken away from their weekly wages would be put away till this time. This money is called a Social Security tax. “The Social Security Act, signed into law by President Roosevelt on August 15, 1935, was the major legislative achievement of the New Deal. It was a landmark in American political and social history, reflecting a public commitment to the economic rights of people and, consequently, extending federal responsibility for social welfare.” (Axinn & Stern, 2012) When you retire you can draw from this money you have worked for, if you pass away your wife or children are entitled to these earnings left by the worker. One of the most differences between now and in the past regarding Social Security is the coverage. People in the past were not all covered regardless if they were working because of the cost and lack of benefits available.
The Social Security system was created in 1935 to provide income for retirees. Today, 167 million people pay Social Security taxes, and 60 million Americans (retired workers, the disabled, survivors of the deceased, and beneficiary dependents) receive the benefits. American workers pay Social Security taxes on their income through an automatic deduction. However, the taxes that you pay are not stashed away into your own personal Social Security savings account, but rather it pools to cover current beneficiaries. According to the Social Security Administration, as seniors age, they rely more and more on Social Security benefits. Social Security was designed to be a supplement, not the only source of income for Americans, though. I have heard that Social Security will only
Social Security, as we know it, ensures an acceptable standard of living for all citizens, and provides a safety net for those who, due to age or disability, are no longer able to support themselves by labor. It’s
Growing up as a kid, not so many young people knew much about Social Security. Some kids might have believed that is was just a nine digit card that their parents kept until they were old enough to take care of it, others knew that it was much more. Social Security is a certain percentage that comes out of your paycheck and into a system. Once it’s in the system the government uses that money that was taken out for people with certain benefits. For example, people with disabilities, foster kids and the one mostly known, retirement. Once retired, in order to receive these benefits, these people must establish that they worked the set amount of years, and also prove that the person is of the qualifying age. Due to the economy taking a big hit back in 2008 the process for obtaining your benefits has become more and more tedious. Due to this struggle, retirees will begin to worry about whether or not they will ever get the benefits they so rightfully earned and also if their rates are going to shift. Because of
Survivors. Social Security 's survivors program provides a monthly lifetime income to the surviving spouse of a deceased worker once he or she reaches retirement age. The amount of the monthly benefit depends on both spouses ' income while they were working. The survivors program also pays benefits to children under the age of 18 and the surviving spouse caring for them. Unless they are disabled, children 's benefits end when the last child either reaches age 18 or graduates from high school, whichever is later.
Social Security is a system all us Americans currently pay into unless exempt for financial, religious, or debilitated reasons. As citizens we pay into this system in order to someday see the return of our wages that we once put in. The money paid into social security aids the elderly and disabled people of the current time. None of that money is put aside specifically for anyone, therefore as long as people continue to pay into social security there should be money to support those who are retired and disabled. Although the amount of money someone puts into the system is not the amount of money that they will receive from it in the end.
Early retirement has been around since the inception of social security. The age requirements have constantly changed over the years. The government at first had stricter requirements for receiving Social Security such as very high retirement ages, and over the years it has been liberalized so access to Security is much easier. The FRA (Full Retirement Age) is constantly changing compared to static early retirement acceptance window.
In addition, the other tax we are paying is the Medicare. Medicate is a health insurance program provided for people who are 65 years old and older. Medicare was once lumped with the Social Security rates; combining the two gives a higher rate than separating it even thought when it is added it is still the same rate. Medicare benefits actually go hand and hand with Social Security
While most people think Social Security is just for the retired, this program covers a lot people including the disabled, survivors of workers who died, dependents of beneficiaries. Depending on the circumstances mentioned above such as income, some can receive social security at any age, and in fact Social Security provides more benefits for children than other government program (Understanding the Benefits).
Social security, the federal retirement system, is one of the most popular government programs in United State?s history. Today, Social Security benefits are the backbone of the nation's retirement income system. The long road to the successful development of social security began in 1935. Before 1935, very few workers received job pensions. Those workers that were covered never received benefits because they were not guaranteed.