Social Security, a cornerstone of the U.S. ssndob safety net, plays a crucial role in providing financial support to millions of Americans, especially retirees, disabled individuals, and survivors of deceased workers. Established in 1935 as part of the New Deal reforms, Social Security has evolved over the years to adapt to the changing needs of the population. In this article, we will explore the key aspects of the Social Security system, including its history, eligibility criteria, benefits, and challenges.
History of Social Security:
President Franklin D. Roosevelt signed the Social Security Act into law on August 14, 1935, during the Great Depression. The primary goal was to provide a safety net for individuals who were unable to work due to old age, disability, or the death of a breadwinner. The Social Security system initially offered retirement benefits, survivor benefits, and disability benefits.
To qualify for Social Security benefits, individuals generally need to accumulate enough work credits by paying Social Security taxes during their working years. Work credits are earned based on the amount of income subject to Social Security taxes. The number of credits required for eligibility depends on the type of benefits sought, such as retirement, disability, or survivor benefits.
Retirement benefits are a central component of Social Security, providing financial support to individuals who have reached the full retirement age (FRA). The FRA varies based on the year of birth, but it typically ranges from 65 to 67. While individuals can choose to claim benefits as early as age 62, doing so results in reduced monthly payments. On the other hand, delaying benefits beyond the FRA can lead to increased monthly payments.
Social Security also offers benefits for individuals with disabilities who are unable to engage in substantial gainful activity. To qualify, individuals must have a severe impairment expected to last at least one year or result in death. The application process for disability benefits involves a thorough medical evaluation to determine the extent of the disability and its impact on the individual’s ability to work.