Social security | fundementals of wealth | University of Maryland University College
The US Social Security program was first introduced in 1935 as part of President Franklin D. Roosevelt’s New Deal. It is a social insurance program that provides income and other benefits for those who are retired, disabled, or deceased; it is funded by payroll taxes which are currently set at 6.2% of an employee’s wage up to $132,900. The program has seen numerous changes over the years; initially it only provided basic benefits to those over 65 but now includes disability income and survivor benefits as well. Additionally, the administration of the program has shifted from individual state offices to one centralized agency overseen by a Board of Trustees appointed by the president and confirmed by Congress. Finally, there have been various attempts to reform the system over time; most recently this involved introducing private investment accounts into the mix which ultimately proved unsuccessful due to high administrative costs and potential financial risks associated with such an approach. Despite these challenges however, Social Security remains one of America’s largest government programs providing vital economic security for millions of Americans each year.