Why the Social Security Act is Still Relevant Today
Tens of millions of people have gained financial assistance through the Social Security Act.
The Social Security Act was first created and signed into law by President Franklin D. Roosevelt in 1935. This law created Social Security, which provides federal safety for persons of old age, poverty, disability, and unemployment. The government provides a variety of programs and benefits to those who are in need of it.
This law has been repeatedly changed, amended, and adapted since its creation. The biggest change came when Lyndon Johnson created Medicare and Medicaid in 1965.
The Social Security Act remains one of the most successful and effective programs today.
It provides:
Life insurance and disability insurance protection
According to Center on Budget and Policy Priorities, “About 62 million people, or more than 1 in every 6 U.S. residents, collected Social Security benefits in June 2018. While older Americans make up about 4 in 5 beneficiaries, another one-fifth of beneficiaries received Social Security Disability Insurance (SSDI) or were young survivors of deceased workers.”
Workers earn life insurance by making Social Security payroll tax payments.
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Benefits
Social security benefits are based on the money you earn when you pay Social Security payroll taxes. The higher your earnings, the higher you benefit. Many people use Social Security benefits as a source of guaranteed retirement income that is not subject to investment risk or financial market fluctuations.
Retirement Protection
Ninety seven percent of the elderly receive Social Security or will receive it.
Social Security provide retirement protection for people at all earning levels. Almost all workers contribute to their Social Security by making payroll tax contributions. Almost all elderly Americans use their Social Security to finance their retirement.
Other facts about Social Security:
Sixty-one million depend on Social Security – more than 1 out of every 6 Americans.
Just over 3 in 5 seniors depend on Social Security for most of their income.
One-third of seniors rely on it for at virtually all (90% or more) of their income.
Social Security’s benefits are modest, but vital, averaging around $15,000 per year.
Social Security lifts 22.1 million Americans out of poverty. Without it, the poverty rate of our seniors would be nearly 41%; instead it is just under 9%.
It is an extremely efficient program, with administrative costs of less than a penny on the dollar.
Social Security is important for all Americans to feel financially stable during retirement. Cosmo offers other crucial policies that would aid in retirement finances. Life insurance and disability insurance are important for those of us who need
Cosmo Insurance Agency is an independent insurance agency serving surrounding communities in New Jersey. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating the latest in technology-based tools and laws on healthcare, employee benefits, life insurance and finance, we keep our clients up-to-date with the plans that encompass all of their needs, whether it is individual or group insurance.
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