How Beneficial is Our Social Security System after Retirement?
When the US first introduced the Social Security system back in 1935 it was a subject of much controversy. It was also a very different program than the social security system that is in place today.
Originally Social Security did not cover many professions agricultural labor, domestic service, government employees, and many teachers, nurses, hospital employees, librarians, and social workers were just some of the workers excluded, and as these were jobs held mainly by women or those of races other than white the discrimination involved with the Social Security act were obvious to many. It would not be until 1954 before all of these professions were covered.
These days anyone who has paid in enough in social security payroll taxes will receive social security benefits when they reach retirement age. What that official retirement age is depends upon the year of an individual’s birth. It is possible to begin receiving partial social security benefits before one’s official retirement age and those who choose to carry on working beyond that date are eligible for continue employment credits that will increase the size of their eventual monthly payment until the age of 70.
Social security disability is a different kind of benefit and is technically available to any worker who has paid in the minimum amount social security payroll taxes five months after they have become “disabled” by way of an illness or injury and are likely not to be able to return to work. Obtaining such benefits is not at all easy though. Although the figure varies from state to state on average there is a 60-70% denial rate of initial claims.
There is a lot of talk about the current financial health of the social security system and whether or not benefits will be available to those young people working today when it comes time for them to retire, as the system now pays out more than it takes in. There are those who would like to see the privatization of the social security system, an idea which is very controversial.
Others would like to see social security benefits be reduced for those who are wealthy. Currently everybody receives benefits according to the number of years they worked and some feel that wealthier seniors should take a cut in benefits for the greater good. They argue though that their level of input while working was higher so they have already done their part.
December 8th, 2009 at 10:25 pm
I would be dead in the water without Social Security. It accounts for about 3/4 of my income. I never thought I’d live this long, so I saved very little for “old age”. Regrets, I have a few, but then again, too few to mention! Fortunately, I was born just before the post WWII baby boom, so I might get a few bucks before the system collapses. Then, I don’t know what will happen, but it probably won’t be pretty! I am naturally all for reducing benefits for the wealthy, but if I were one of the few who had worked hard and prudently saved or invested my money, would I feel the same way? Probably not!