If you are living in the US and making ends meet can be a problem at times, then you need to know about the special program of the government which is established just to help those in need. Do you know what Social Security is? What is the meaning of Social Security and the concept? Well, if you are looking for answers for these questions and many more then you have landed on the right page. Everything you need to know about it is below.
Started in 1935, Social Security is a federal program that provides economic help to the section of the public which needs it. People who can benefit from the Social Security program of the government are retired people, poor, disabled and others. During the great depression of the 1930s, the US Government signed the Social Security Act in an effort to provide a safety net for people going through financial crises. Though the great depression has ended a long time ago, the authorities have decided to keep the program running so as to provide the required financial support to people needing it.
How Does It Work?
In the US, employees as well as employers are required to pay Social Security taxes, and the funds raised through levying these taxes on the general public are provided as benefits to those in need. This way, workers of today pay the money that they will receive as benefits when they retire and so on. The Social Security benefits you receive are based on the amount of Social Security taxes you paid that are somewhat based on your income.
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What Are Social Security Benefits?
The benefits offered by the Social Security Administration can be received in a number of ways, such as retirement benefits that you start receiving after you have reached the age of 62. In 2011, approximately 39 million people in the US received average monthly benefits of USD 1229 as retirement benefits. The US Social Security Administration also offers Disability benefits for people who have been disabled for at least five full months and their condition has rendered them unable to work. Furthermore, there is also a program for survivors which provides benefits for the widows and children of Social Security beneficiaries.
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Apart from these, there are also supplemental benefits that are available for people 65 years of age or older who have very limited financial resources and are disabled. Then there is also medicare which covered about 49 million people in 2011, making more than 550 billion US dollars in benefit payments.
Well, now that you know what exactly Social Security is, what it entails and how it works, it is time for you to tell us what you think. Do you believe that the Social Security scheme of the US government is adequate or does it need further changes to be made for effective? Tell us through your comments below. We would love to hear from you.
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