Despite the fact that millions of people collect its benefits each year,
few know the history of Social Security and how it came to be. While certainly
not the most exciting topic, Social Security has an important past and
has grown into an invaluable source of financial support for countless
American citizens. Take a look at the following interesting facts about
Humble beginnings: In January 1940, Ida May Fuller of Rutland, Vermont became the first
person to receive Social Security. The check was for a whopping $22.54.
Far reaching impact: Social Security helps far more people than many of us realize. While
many middle or upper class earners have considerable savings or pension
plans that they rely on during their golden years, most Americans will
rely on Social Security for a large portion, if not all, of their retirement
income. According to 2014 calculations by the
Social Security Administration (SSA), it is estimated that roughly 35% of beneficiaries will depend on social
security for more than 90 percent of their income after reaching retirement age.
Benefits have increased: Ida May’s first benefit check, when adjusted into today’s
inflated amounts, was worth roughly $4,650 per year. In other words, it
wasn’t much. Now, beneficiaries receive about four times as much
per year, or $16,000.
Not just for the elderly: Although Social Security may indeed have been created with retirees in
mind, it is now available to a much wider group. While 52% of Social Security
payments are paid to retired workers, nearly 15% is paid to permanently
disabled workers. The remaining 33% is paid to survivors and dependents
of recipients, which includes spouses and sometimes children. Surprisingly,
20% of beneficiaries are under the age of 62, the official age for claiming
Social Security based on working years.
The future is unclear: Financial analysts, politicians, economists, people nearing retirement,
and new workers entering the workforce are worried about the future of
the program, and for good reason. According to data collected in 1955,
it is estimated that there were roughly 9 workers contributing to Social
Security for every 1 person collecting its benefits. Now, that ratio has
dropped to below 3:1, with population trends suggesting that this could
be 2:1 by the year 2030. Unfortunately, the only foreseeable fix for this
problem is to either take more from people’s wages or cut benefits
by a substantial amount.
Why Are These Facts Important?
Aside from being some tasty tidbits of trivia, these facts display the
often-unrealized importance of Social Security and the complications of
the system. Unfortunately, receiving the benefits that this program offers
can be much easier said than done, with roughly 3 out of 5 applicants
denied. At Disability Action Advocates, our
Reno Social Security Disability lawyers can help take the guesswork out of your application and maximize your
chances of securing the results you need.
We have helped thousands. Call (888) 401-3920 or
contact our office online today.