Social Security in Four Parts

Image 2Part 4: Effective Claiming Strategies

Social Security benefits serve as a foundation that many Americans will rely heavily on in retirement. Program benefits provide one-third of total income for the elderly population and more than half of the income for a staggering 48% of those over age 65. Yet, despite this heavy reliance, 90% of Americans begin collecting Social Security benefits (at a steep reduction) before attaining their full retirement age. Early filing is linked to an increase in poverty and income inequality among the elderly, which in some cases may be remedied through more informed benefit-claiming decisions. Continue reading

Social Security in Four Parts

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Part 3: Benefit Categories

The Social Security Act of 1935 and its amendments created four categories of benefits, each based on the earnings records of a covered worker, and each designed to provide a basic level of economic security. In the third segment of our four-part series, we’ll focus on retirement benefits that are linked to the earnings of an individual worker. Continue reading

Social Security in four parts

Social Security

Part 1: history and future

The Social Security Act was signed into law on August 14, 1935, creating a social insurance program to pay retired workers age 65 and older a stable income after retirement. Enacted in the midst of the Great Depression in response to crushing poverty and a shift from agrarian self-sufficiency to post-industrial urbanization, the original Act sought to provide Americans with protection against the “hazards and vicissitudes of life”.  Since its inception, millions of Americans have received benefits from the program, yet despite strong public support, the program has faced a series of funding challenges that continues to threaten its existence. Continue reading