Social Security Turns 75 – A Look At Then And Now
Warning: arsort() expects parameter 1 to be array, null given in /home/goldnet2/public_html/retirementzest/wp-content/plugins/wp-affiliate-pro.php(11) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code on line 661
Warning: Invalid argument supplied for foreach() in /home/goldnet2/public_html/retirementzest/wp-content/plugins/wp-affiliate-pro.php(11) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code on line 668
Warning: Invalid argument supplied for foreach() in /home/goldnet2/public_html/retirementzest/wp-content/plugins/wp-affiliate-pro.php(11) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code(1) : eval()'d code on line 697
When President Franklin D. Roosevelt signed Social Security into law on August 14, 1935, he said,
“The civilization of the past hundred years, with its startling industrial changes, has tended more and more to make life insecure. Young people have come to wonder what would be their lot when they came to old age. The man with a job has wondered how long the job would last. This law, too, represents a cornerstone in a structure, which is being built but is by no means complete. It is, in short, a law that will take care of human needs and at the same time provide the United States an economic structure of vastly greater soundness.”
Change and economic uncertainty was a regular part of everyday life in those days, just as it is today. Social Security helped add some stability to American citizens who otherwise may not have had an income at all — just as it does today.
For 75 years, Social Security has provided public service that has touched the lives of Americans across the country. From its very inception, Social Security was intended to confront change, both predictable and unforeseen.
Michael J. Astrue, Social Security Administration Commissioner said, “For three quarters of a century, Social Security has provided a financial lifeline to millions of Americans. As we approach our anniversary, Social Security remains a solid foundation for retirees, the disabled, and survivors.
The Basics
· Social Security is primarily financed by a payroll tax, split between employer and employee.
· It pays monthly benefits to about 53 million Americans.
· For 25 years, it has been taking in more than it has been paying out.
· This year, with the recession and high unemployment, less money has come in than anticipated, and the system has been drawing on the reserves.
· The Congressional Budget Office estimates that the reserve fund and payroll taxes will cover full payment of benefits for another 33 years.
· Among the achievements of Social Security is that it has helped to drastically lower the poverty rate among the elderly—from 35 percent in 1960 to less than 10 percent today. It provides 40 percent of the income of people 65 and older, the Employee Benefit Research Institute reported in June.
· Most people now receiving Social Security never expected to need it as much as they do. Even before the recession, retirement plans and personal savings were in decline. Now, as unemployment remains high, 50 percent of a Bulletin survey respondents age 50 and older said that they “rely or will rely” on Social Security more than they expected when they were younger.
The Future
In his article, Social Security: More Than You Might Think, Barry Rand, AARP CEO said, “Many people do not realize how valuable Social Security will be to them. On average, an individual would have to save an additional $225,000 while working to replace the benefits Social Security provides in retirement. Independent investments, pensions, IRAs and 401(k) accounts are all important parts of retirement savings, but Social Security is the guaranteed base of retirement security for most Americans. In fact, couples on average can expect about $22,000 per year in Social Security benefits. Social Security is the most successful program in our nation’s history, and we need to make the modest changes necessary to strengthen the guaranteed benefit for both current and future generations.”
A new report by the U.S. Senate Special Committee on Aging says much the same thing. It lays out proposed options that could close the projected long-term gap—without cutting benefits. For example:
- Lift the cap. Earnings above a specified level, currently $106,800, aren’t currently taxed to support Social Security. The cap inches up year-to-year based on increases in average wages, but raising it more would have minimal impact on high earners while closing much of the projected gap.
- Raise the payroll tax rate—but very gradually, such as by 1/20th of a percent each year for workers and employers over the course of 20 years.
- Extend Social Security coverage to more workers, including newly hired state and local government employees. This would bring more tax revenue through the door.
- Earmark revenue from the estate tax for Social Security.
- Bolster Social Security’s reserves by diversifying its trust fund beyond government bonds to include higher-yielding commercial investments.
Some Interesting Trivia:
In early 1956, Social Security installed its first modern computer–the IBM 705 mainframe. It was used to calculate benefit amounts electronically.
In 1989, President George H. W. Bush signed legislation mandating the periodic issuance of Social Security Statements to working Americans.
In 1994, President Bill Clinton signed legislation making the Social Security Administration an independent agency reporting directly to the President.
Assisted living marketing services are provided by 800Seniors.com, a leading referral
system in the assisted living industry. We provide the perfect match between seniors
searching for a facility and assisted living facilities nationwide and take the confusion and
hassle out of the search. For more information, call 1-800-768-8221 or visit Assisted Living Los Angeles.
About the Author: Gloria Ha’o Schneider is a Los Angeles-based freelance writer who has written advertising / sales and product development copy for major gift industry companies, website content, greeting cards, merchandising copy, and senior-related issues and has a passion for writing human-interest stories.
Retirement Related Posts
