The History and Benefits of Social Security

The US social security program dates all the way back to the Great Depression when President Roosevelt signed the New Deal. As part of the New Deal, Social Security was set up as an insurance program to ensure the senior citizens would have an income. Social Security also included unemployment benefits and child welfare.

This government program is funded through payroll taxes under the Federal Insurance Contributions Act.

Social Security Timeline

The Social Security Act has gone under several amendments since it was enacted. In the 1930s, the Social Security Trust Fund was created so that the monies that were paid into social security could be invested. Also in the 1930s, the Social Security Act was amended to give more protection to women and children.

In the 1950s, Social Security was amended to include household workers, non-profit workers, self-employed workers, agricultural workers and more to make sure that more of the working population was covered by Social Security benefits.

In the 1960s, Medicare was added to Social Security. This gave those who are dependent on Social Security a way to receive healthcare. And men who were dependent on women were able to collect Social Security if the need arose.

In the 1970s, the amount of Social Security a person could receive was increased and pay check withholdings for Social Security (the FICA taxes) increased more than 300%. This was to protect Social Security from failing or running out of money through 2030. Though Social Security was already in trouble again a decade later and is still said to be in trouble today.

During the 1980s, taxes were increased again to raise more money for Social Security. This increase resulted in an excess of funds, so the government invested these funds in securities.

Eligibility

To be eligible to receive Social Security benefits, you must meet certain requirements. The first is an age requirement. The minimum age is 62 for someone who is retired to apply for Social Security benefits. In some cases, some people may have to be 67 before becoming eligible.

You must have worked and paid into Social Security in order to receive Social Security benefits – for retirement. If a person becomes disabled, he or she may be eligible without having worked long enough. To qualify, you have to have earned 40 credits – or worked for 10 years, since most people earn four credits per year.

Widows/widowers may qualify to receive the Social Security benefits of their spouse if they are over the age 62 and were married for 10 years or more.

Paid Benefits

Once you’ve applied for benefits and been approved, you will receive Social Security payments on a monthly basis. The amount you receive will depend on several factors – like how long you worked, the amount of money you earned and what age you retired.

The more money you earn during your working lifetime, the more Social Security you will be paid. At the age of 65, you’ll also qualify for Medicare.

Receiving Benefits

To apply for benefits is easy. You can even apply online. You can also apply by phone or in person at your local Social Security office.

Once you’re approved for benefits, there are several ways to be paid the benefits. Your benefits can be mailed to you in a check each month. Or you can choose to have your Social Security payment deposited directly into your bank account. If you choose, you can also elect to receive the Direct Express debit card. Each month, your Social Security payment is automatically added to an account attached to this debit card for you to use.