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The History of Social Security
In 1935, President Franklin D. Roosevelt proposed to Congress long-range economic security legislation and on August 14, 1935, the Social Security Act was signed into law. The law established two social insurance programs to help meet the threat of old age and unemployment. The choices of old-age and unemployment as the risks to be covered by social insurance was a likely development, since the depression had wiped out much of the lifetime savings of the elders and had reduced opportunities for profitable employment. ...
Social Security – Not Just for Retirement
In addition to retirement benefits, Social Security also provides benefits to the disabled, spouses, or dependants of someone receiving benefits and to widowers or children of someone who has passed away. Today, more than 45 million people, or about one in six Americans, collect some kind of Social Security benefits. Because of the complexity of the various programs under the Social Security umbrella, this paper will focus on the retirement aspect of the program.
How Social Security Works
Social Security is based on a simple concept. When you work, you pay taxes into the Social Security program and when you retire or become disabled, you receive a monthly payment based on your earnings.
Out of each dollar paid to Social Security taxes, 85 cents go to a trust fund to pay monthly retirement benefits and the remaining 15 cents goes to another trust fund to pay benefits for those on disability. ... Social Security retirement benefits account for approximately sixty one percent of the disbursements. ... To qualify for Social Security benefits, most people need 40 credits or 10 years of employment. ... Social Security equates to 6. ...
Social Security benefits are based on a percentage of earnings averaged over a working lifetime. ... The lower the earnings, the higher the percentage of earnings Social Security replaces. ... For example:
· If your average lifetime wages are at the minimum wage level, Social Security will replace about 60 percent of earnings.
Approximate Word count = 1585
Approximate Pages = 6.3
(250 words per page double spaced)
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