What is the purpose of Social Security? This mammoth government program has been a part of the lives of all working Americans for the past 70 years. It is one of the most important and popular government programs, but why? Who created it, and for what purpose? This article will help shed light on the massive social insurance program and why it is important to you.
A Brief History Of Social Security
Social Security was born out of the Great Depression. During the lean 1930s, the government was desperate to find a way to support the retiring class. With the poverty level of the elderly high, President Franklin Delano Roosevelt signed the Social Security Act, which became part of his New Deal. Social Security began without any start-up funding. Workers paid the Social Security tax directly from their paychecks. The taxes then went immediately into providing support for the elderly, sick and widowed. The Social Security tax grew from 2% in the 1930s to 15.30% in recent years. Social Security is now the government's largest expenditure at 20.8% of the federal budget.
What Is Social Security's Purpose?
Social Security is a social insurance that protects retired workers from poverty. Although Social Security is best known for its retirement program, it also supports survivors and the disabled. You can think of Social Security as a fund you pay into that will directly benefit one of these three groups. Social Security is not a private account. The money that you pay will not go to you. However, as you continue to contribute to Social Security, you earn credits that make you eligible to receive Social Security benefits once you retire. You must accrue at least 40 credits, with each credit equal to 3 months of work and $900 paid into the tax.
According to the Social Security Administration, 40% of senior citizens have avoided poverty because of their Social Security benefits. Although a recipient will certainly not get rich off of a monthly Social Security benefits check, its purpose is to provide a cushion against harsh times.
 | Understanding how Social Security benefits are calculated and when you can receive them will help you make the most of this program. |
 | There are three ways you can go about applying for Social Security benefits: in person at a Social Security office, over the phone or using an online form at the Social Security website. |
 | Social Security retirement benefits are set aside for workers to assist them in their retirement years. In order to qualify for social security retirement benefits, your age and years of work will factor in. |
The death of a spouse is a difficult time for any family, but it can be worse for a family worried about finances. If your deceased spouse was receiving Social Security benefits at the time of death, or was eligible to receive Social Security benefits, you or your children may be eligible to receive Social Security death benefits. |
For many disabled individuals, Social Security disability benefits are the only source of income enabling them to lead a relatively normal life. If you're permanently disabled and curious about applying for Social Security disability benefits, here are the things you need to know. |
