Essay about When Roosevelt Signed The Social Security Act

1327 Words Nov 22nd, 2016 6 Pages
When Roosevelt signed the Social Security Act in 1935, it was designed as a safety net and was intended to protect American workers upon retirement, disability or in the event of an early death. This program is the largest government program in the world and uses a pay-as-you-go system where workers contribute 6.2% of their salaries into the plan and come time to give up work, and they will be eligible to receive a limited monthly income to assist them during retirement. In other words, the individuals working today are paying for the former workers now in retirement, hoping that others will do the same when it comes their time to retire. Those who have contributed can start collecting these aids at 62 with the amount paid per month reduced, while workers who retire at age 67 will receive their benefits in full. The Social Security program has had some complications back in 1980’s due to budget shortages. In 1983 some changes were made to the program, these changes include; taxing the benefits for the first time, 50% of these benefits became taxable for the individuals taking in $20,000 or more a year and the age for people to receive full benefits got raised from 65 to 67. These changes would be just the beginning of obstacles that lie ahead. Per An early sign of financial distress to come, was when 57 million Americans got denied their cost of living adjustment (COLA) in their allowances. This brought awareness because it was the first year without the…

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