President Franklin D. Roosevelt signed the Social Security Act into law on August 14, 1935, just 14 months after he first proposed a plan for social insurance. The Act created a federal safety net for elderly, unemployed, and disadvantaged Americans, providing financial benefits to retirees over the age of 65 based on lifetime payroll tax contributions. The Act also established the Social Security Administration to implement and oversee the program. The 32-page legislation was the result of work begun by the Committee on Economic Security, established by FDR in 1934.
Upon signing the Social Security Act, Roosevelt established a board to administer the program and begin payroll tax deductions for enrollees, with registration starting in November 1936. However, not everyone could participate initially, with exclusions for self-employed professionals, field hands, and domestic workers. To become eligible, workers applied at their local post office and received a national identity card, known today as a Social Security card. This identification card is used to track workers’ earnings and benefits.
Over time, the Social Security Act was amended several times, with the addition of child, spouse, and survivor benefits in 1939. The first person to receive a monthly benefit under the Act was Ida M. Fuller in 1940, receiving a check for $22.54, equivalent to $420.15 today. In the 1950s, significant changes were made to the program, including increased benefit amounts, expanded coverage, and the introduction of disability insurance benefits. The 1960s saw further growth with the creation of the Medicare program in 1965.
Social Security continued to evolve, with the establishment of the Supplemental Security Income (SSI) program in 1972, providing cash payments to older, blind, and disabled individuals with low incomes and limited assets. By February 2023, about 66 million Americans, or one in five residents, collected Social Security benefits. The program faces challenges due to an aging population and fewer workers paying into the system. Experts predict that the trust fund could run short of cash by 2033, potentially impacting benefits for millions of Americans who rely on Social Security.
The primary challenge for Social Security is a demographic issue, as fewer workers are supporting the rising costs of benefits as more baby boomers retire. Current projections suggest that the program may run short of cash within the next decade, as fewer workers contribute to the system. Changes may be necessary to ensure the long-term sustainability of Social Security and protect the benefits of those who rely on the program for financial support. For more lifestyle articles, visit www.foxnews.com/lifestyle.
