Social Security History

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A Brief History of the Social Security System

The Social Security Act signed into law in 1935 by President Franklin D. Roosevelt. President Roosevelt objectives of this act were the security of the men, women and children of this nation first. The act created a social insurance program designed to pay retired workers age 65 or older an income after retirement. From 1937 until 1940, social security paid benefits in the form of a single, lump sum payment. This system was used to provide some payback for those who contributed to the program but who would not participate long enough to vest in monthly benefits. The original act was only for retirement benefits and only for the worker.
In 1939 amendments were made so that spouses and minor …show more content…

It is the most important program to America’s retired workforce. Many senior’s without it would struggle to pay their bills. A large majority of Americans don’t mind paying for social security it is the most successful government program in our nation’s history. Before social security nearly half of senior citizens lived in poverty. Social Security touches the life of every worker in America. It is an important source of income for groups with low earnings and less opportunity to save and earn pensions, including African Americans and Latinos. African Americans and Hispanic workers benefit substantially from Social Security because they have higher disability rates and lower lifetime earnings than whites. Hispanic workers also have longer average life expectancies than whites, which mean they have more years to collect retirement benefits.
How Social Security works today is the money you pay in taxes is not held in a personal account for you to use when you get your benefits. Your taxes are being used right now to pay people who now are getting benefits. Any unused money goes to the Social Security trust funds, not a personal account with your name on it. It is projected that the Trust Fund will be depleted within the next 15 years and all benefits will be paid solely by workers who pay Social Security taxes at that

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