Social Security is a cornerstone of the United States’ ssndob safety net, providing financial support to millions of Americans in their retirement years. Established in 1935 as part of President Franklin D. Roosevelt’s New Deal, Social Security has evolved over the decades to address the changing needs of the population. This article aims to provide a comprehensive guide to Social Security, covering its history, key components, eligibility criteria, benefits, challenges, and potential reforms.

I. Historical Overview:

The Social Security Act was signed into law on August 14, 1935, marking a pivotal moment in American history. The program aimed to provide economic security for retirees by creating a system of social insurance. Workers and employers would contribute to the program through payroll taxes, and individuals would receive benefits based on their contributions when they retired.

II. Key Components:

1. Old-Age and Survivors Insurance (OASI): The OASI program is the core of Social Security, providing retirement benefits to eligible individuals. Survivors of deceased workers, including spouses and dependent children, are also eligible for benefits.
2. Disability Insurance (DI): Social Security Disability Insurance provides financial assistance to individuals who are unable to work due to a severe disability. To qualify, applicants must meet strict criteria demonstrating the severity and expected duration of their disability.
3. Medicare: While not directly part of Social Security, Medicare is closely associated with the program. Medicare provides health insurance for individuals aged 65 and older, including some younger individuals with certain disabilities.

III. Eligibility Criteria:

To qualify for Social Security benefits, individuals must accumulate sufficient “credits” by working and paying Social Security taxes. As of 2024, workers can earn up to four credits per year, and most individuals need 40 credits (10 years of work) to be eligible for retirement benefits.

IV. Benefits Calculation:

The amount of Social Security benefits an individual receives is determined by their lifetime earnings and the age at which they choose to claim benefits. Claiming benefits early (as early as age 62) results in lower monthly payments, while delaying claims until full retirement age (currently between 66 and 67) can increase monthly benefits. Delaying benefits beyond full retirement age can result in further increases.