Social Security

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Social Security

United States social insurance system

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Last updated

July 17, 2026

Quick Summary

Social Security is a federal insurance program in the United States that provides retirement, disability, and survivor benefits to eligible workers and their families. Established in 1935 during the Great Depression, it aims to offer a financial foundation by replacing a portion of lost income.12

The program is primarily funded through payroll taxes (FICA) paid by both employees and employers. It operates on a pay-as-you-go system, meaning current workers' contributions support current beneficiaries.13

Eligibility and benefit amounts are determined by factors such as an individual's work history, age when claiming benefits, and, for disability claims, medical criteria. While Social Security provides crucial support, it typically covers only a part of a worker's pre-retirement earnings.1

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United States
The George W. Bush administration
…particular, he sought to privatize Social Security and overhaul the tax system.
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…particular, he sought to privatize Social Security and overhaul the tax system.
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Notes on Aging
Wealth, health, and power
In the United States, Social Security, Medicare, and Medicaid are now fully established government responsibilities. Although the provision of health care is far from adequate—too many of the elderly poor fail to receive needed medical attention or are dependent on charitable help—it is nonetheless widely accepted that there is…
Read More
In the United States, Social Security, Medicare, and Medicaid are now fully established government responsibilities. Although the provision of health care is far from adequate—too many of the elderly poor fail to receive needed medical attention or are dependent on charitable help—it is nonetheless widely accepted that there is…
Read More

social security
…is restricted to the federal social insurance system (OASDI) as distinct from state benefits and “welfare,” which in Europe would be called social assistance. In some countries (for example, Denmark and the United Kingdom) the reduction of poverty historically has been a central aim of social security policy, and the…
Read More
…is restricted to the federal social insurance system (OASDI) as distinct from state benefits and “welfare,” which in Europe would be called social assistance. In some countries (for example, Denmark and the United Kingdom) the reduction of poverty historically has been a central aim of social security policy, and the…
Read More

Social Security Act
…employer and employee contributions; the system was later extended to include dependents, the disabled, and other groups. Responding to the economic impact of the Great Depression, five million old people in the early 1930s joined nationwide Townsend clubs, promoted by Francis E. Townsend to support his program demanding a $200…
Read More
…employer and employee contributions; the system was later extended to include dependents, the disabled, and other groups. Responding to the economic impact of the Great Depression, five million old people in the early 1930s joined nationwide Townsend clubs, promoted by Francis E. Townsend to support his program demanding a $200…
Read More

Social Security Administration
…the federal agency that administers Social Security programs in the United States. Although many Americans associate Social Security with retirement benefits, the agency’s role goes far beyond sending monthly payments to beneficiaries.
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…the federal agency that administers Social Security programs in the United States. Although many Americans associate Social Security with retirement benefits, the agency’s role goes far beyond sending monthly payments to beneficiaries.
Read More