Social Security (SS) just celebrated its 83rd birthday on Aug. 14. In case you’re trying to do the math, this means that it’s been in existence since 1935 when President Franklin D. Roosevelt was still in office.
The Social Security Act was originally signed into law as a way of ensuring that aging or retired workers would have an income coming in on a monthly basis to help support them and their living expenses. Although the bill was signed into effect five years prior, the first such payout didn’t occur until the first day of 1940.
Currently more than 62.5 million Americans receive SS each month. Of those recipients, 43.1 million are retirees.
Data recently published by the Social Security Administration (SSA) shows that at least 34 percent of all SS recipients rely almost exclusively on their monthly payments to cover their basic expenses. Another 62 percent rely on it as at least 50 percent of their total annual income. At least 15 percent of retirees would live below the poverty line if it weren’t for the SS benefits that they receive.
While many people found themselves alarmed when the trustees with the SSA announced that the benefits paid out this year would exceed what the system takes in, others argue that this shouldn’t be something to worry about.
Many financial analysts argue that the system will continue to exist as long as 12.4 percent payroll tax deductions still are made. In 2017, payroll taxes generated $873.6 billion used to continue making payouts.
Financial analysts argue that the U.S.’s growing labor force and the increased value of their productivity will continue to fund the system for the foreseeable future as well.
The SSA also administers a Social Security Disability Insurance (SSDI) program aimed at ensuring that disabled individuals can make ends meet. Understanding what qualifies as a severe impairment isn’t easy and acquiring benefits can take time. A St. Louis attorney can help you navigate the claims process toward a desired conclusion.