On August 14, 1935, President Franklin D. Roosevelt signed the Social Security Act into law. It was a cornerstone of the forward-looking reforms that were packaged together as the “New Deal.”

Social Security was born at a moment in history when the Great Depression had put over half of the aged population in the U.S. in jeopardy because they could not support themselves. Prior to Social Security, destitute older Americans had only their families, “poorhouses,” and paltry social services to rely upon. While some states tried to remedy the situation by instituting state pensions, it was an inadequate solution for most seniors.

Labor Secretary Frances Perkins lobbied Roosevelt to support a package of social welfare benefits that would include Social Security. While Social Security had vocal critics, especially those who objected to a payroll tax, once the American public understood its value, Social Security became arguably the federal government’s most popular program.

Social Security today

Today, 96 percent of the population is eligible to receive Social Security benefits when they reach their retirement age. According to the Social Security Administration:

• In 2024, an average of almost 68 million Americans per month will receive a Social Security benefit, totaling about $1.5 trillion in benefits paid during the year.
• Nearly nine out of 10 people age 65 and older were receiving a Social Security benefit as of June 30, 2024.
• Social Security benefits represent about 30 percent of the income of people over age 65.

Social Security: looking forward

In 1940, five years after the Social Security Act was signed into law, the life expectancy of a 65-year-old was almost 14 years (79 years of age). Today it is over 20 years (85+ years of age). The number of Americans 65 and older will increase from about 61 million in 2023 to about 77 million by 2035.

There has been much reporting about the concern that, by 2034, the Social Security Trust Fund could be exhausted, causing a gap between Social Security tax revenues and benefits due. If Congressional action is not taken, Social Security tax revenues are projected to then cover only about 80 percent of benefits due. In the past, changes were made to Social Security to cover that gap when it existed.

Like millions of Americans, my wife and I currently draw Social Security benefits. Our combined work history, plus the fact that we waited as long as possible to take these benefits, enables us to draw monthly amounts that are essential in helping to ease the financial burden of retirement. I’d bet that is true for many Crow’s Feet readers.

So as I look forward to the future of Social Security, I very much want it to be financially sound for at least 10 years (for our selfish benefit!). Beyond that, I believe the payroll tax should be expanded so that wealthy wage earners pay their fair share into Social Security. This would make it more likely that future generations will not have to see a reduction in benefits.

The elimination of most company pensions, combined with the fact that the American populace in general has underfunded their retirement savings, suggests that Social Security will become more vital as America ages. I hope it remains a viable program that every older American can look forward to in retirement.

This article originally appeared in "Crow's Feet," a Medium publication. You can find the original article here: https://medium.com/crows-feet/social-security-is-89-years-old-84a765d98ba9?sk=ac18dd3800dd159edcb1b1a343b85c62

Image of Social Security card: Public domain via Wikimedia Commons

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