In 2015, Social Security turned 80 years old. When it was enacted, it was a groundbreaking program that provided financial security and assistance to particular groups of people. Now, many people take the program for granted, but how much do you really know about the origins of Social Security, who it was and is intended for, and how it can help you?

Social Security Then

The original Social Security Act was signed into law by President Franklin D. Roosevelt in 1935. At that time, the U.S. was just beginning to recover from the Great Depression.

Millions of people were still out of work, and there was an alarming concern for the elderly and retired Americans who had lost everything. The Social Security program was intended to be—and still is today—a social insurance program. It’s a government-run program providing economic security to U.S. citizens.

The 1935 Act provided for “old age,” or retirement, benefits, aid to dependent children, disability insurance, and unemployment insurance. Payments were made in lump sums until 1940 when a monthly payment system was put into place. And, it was paid for by workers. Workers made contributions to a “trust fund” from their paychecks to pay for the retirement and other benefits they’d need in the future.

The Social Security Board (SSB) was created when the President signed the Act in 1935. It remained that way until 1946 when it was renamed the Social Security Administration (SSA).

Social Security Today

Over the years, the Act was changed or “amended” in several ways, but the basic principles are still the same. Under today’s Social Security Act, the SSA still manages the program, workers still make contributions from their paychecks, and monthly payments are still made to those who are eligible for the following benefits.

In fact, Social Security now covers an estimated 96% of Americans. These days, about 167 million people are working and paying into the system that provides benefits for 59 million people.

Retirement Benefits

At age 66 or 67, workers who contributed to the trust fund may apply for payments to help with everyday living and expenses and to offset the loss of income from their jobs. You can retire at age 62, but payments are reduced if you collect benefits before age 67. The more money you make, the higher your retirement benefits will be.

Survivor and Death Benefits

A worker’s spouse and/or dependent children may receive monthly payments in certain circumstances. The SSA also pays a small lump-sum death benefit to surviving family members to help pay for funeral expenses.

Disability Benefits

Disability benefits are for workers who have paid into the trust fund for a certain amount of time and who have a serious mental or physical disability that interferes with their ability to work.

Today, unemployment insurance isn’t covered by the Social Security Act. Rather, it’s handled by a joint state-federal program.

Do you know where you stand with your Social Security benefits? How much will they impact your retirement? Since Social Security will be such a major part of your retirement income, it is imperative to make the right filing decisions. We’d love to talk to you about your situation, so give our office a call at (323) 254-3072 or email us at This email address is being protected from spambots. You need JavaScript enabled to view it. .

About Brent

Brent M. Mason is the President of Mason & Associates, Inc. Brent began his career in 1999 with Putnam Investments, where he was a vice president and served as the marketing manager for Putnam’s Insurance Products Division, specializing in the development and sale of investment vehicles within insurance related products. Brent earned a Bachelor’s Degree in Business Administration from Southern Methodist University, in Dallas, Texas where he focused on marketing and finance. Brent is a licensed California insurance agent and can offer life, health, variable and long-term care insurance products. Currently, he is a member of the Board of Directors at Hillsides, an organization that specializes in meeting the needs of at-risk children in the greater Los Angeles area. Brent lives in Pasadena with his wife Leah and their three beautiful children. He enjoys golf, snow skiing and spending time with family and friends.