Signed into law on August 14, 1935 by Franklin Delano Roosevelt, a limited form of what we now call Social Security has been in place since January of 1937. During the Great Depression, more than half of senior citizens after Retirement were in poverty and the “social insurance” plan was developed by the President’s Committee on Economic Security as a means to combat it. In the beginning, the program was designed to provide benefits to the retired and unemployed, as well as a lump-sum at death.
From the start, the limitations imposed by the program were controversial: benefits were offered for certain professions, leaving out women and minorities in large numbers. Exclusions that kept nurses, teachers, social workers and many others from claiming benefits meant barely more than half of the American workforce received help. In addition to stipulations already in place “just big enough for the majority of Negroes to fall through,” as the NAACP protested, much of the authority for distributing aid was given to the states to appease Southern congressmen. As a result, black families were often allocated less money than white ones, widening the gap even further.
Of course, there was some debate as to whether the program would be considered constitutional at all. The Supreme Court had been quite forceful in striking down New Deal legislation throughout the mid-1930s and, if not for a timely switch after the Judiciary Reorganization Bill was proposed by President Roosevelt in 1937, it might have been eliminated just as the first death benefits were being paid out. A pair of decisions released on the same day, Steward Machine Company v. Davis and Helvering v. Davis, upheld the right of the federal government to set policies for “the promotion of the general welfare.” Three years later, Ida May Fuller of Ludlow, Vermont received the first monthly Social Security payment.
The program has evolved almost continuously, as concerns regarding holes in the payment plans led to more inclusive amendments in 1939. The number of covered individuals remained relatively stable until separate amendments in 1950 and 1954 extended coverage to nearly everyone, but dependents and spouses of working women were still prevented from receiving death benefits until 1962. It wasn’t until the 1970s, when protection was extended further and cost-of-living adjustments were created almost 40 years after the bill first went into effect, that Social Security as Americans understand it today came into being.
So this was just a brief of Origin of Social Security
The early retirement pension is one of the main components of the pension system in the US. Through the early pension system, the retirees are provided with financial stability which helps them to have constant source of funds. In most cases, the early retirement pension scheme is applied for workers whose age is between 18 and 67 years.
In simple terms, the main condition on which the early pension scheme is granted is that is the work capacity of the applicant is reduced by half of his or her overall capacity. In most cases, there are 3 sub divisions which are included in the Early Retirement Pension scheme. The classifications are based on work opportunities, age, the ability to work and other factors.
Usually, the income that you get from the early pension is based on the own income of the individual or the pensioner. In this case, the income of the spouse does not affect the retirement pension amount. In special cases, there may be addition of supplements to the pension scheme such as needs supplements, home care supplements, medicine and health supplements and so on.
One of the main advantages of the early retirement pension is that it encourages the older employees who are less productive to retire early from the job. On the other hand, it is also beneficial to the employees as the firm does not require to reduce the normal salary of the employees.
Some companies also provide health insurance benefits in the early retirement pension scheme. In most cases, those who are aged over 50 needs to have at least one health insurance plan. One of the main aspects of judging the early pension plan is that whether it is sufficient enough to cover your expenses. If the scheme is sufficient to take care of the expenses, you can accept the early pension offer.
Social Security is also another vital factor in determining the effectiveness of the early pension scheme. Try to see whether the early pension includes social security. One of the best ways to get better benefits is to delay your social security claims to enjoy longer returns.
If you have that sufficient financial stability and risk taking ability, early retirement pension can be a good option for you. Do your Retirement Planning now and have a better future.
Is Applying For Social Security retirement benefits a nerve wrecking task for you? Do you find yourself running from door to door asking what should be the actual procedure? Well, there’s nothing to worry about and “applying” is the easiest part of all.
Is applying for social security retirement benefits a nerve wrecking task for you? Do you find yourself running from door to door asking what should be the actual procedure? Well, there’s nothing to worry about and “applying” is the easiest part of all.
Social Security Number or SNN is the most vital number for any working US citizen. Through this program you get all the social protections, which include disability, poverty, unemployment, retirement, old age, and so on. This benefit is given through social insurance, income maintenance, different kinds of services, and of course, as social security benefits. In order to savor the sweetness of these social security fruits, you need applying for social security benefits in a proper way. Though the task may seem tortuous, you will certainly feel glad once checks start arriving.
The first question that must be popping out in your mind is: “how much would I get?” Well, you will get nearly 40% of your earnings to live on post retirement. So, Retirement Planning needs to be done very carefully as well. In order to be eligible for these benefits, you need to work for at least 10 years. You can start receiving these benefits once you attain the age of 62 years or can wait till 65. However, if you opt for receiving the benefits at the age of 62, the amount will be much less than that of 65. The more you would pay toward tax during the tenure of your employment, the more you will receive as benefits.
While applying for these benefits, you need to submit the things as follows:
- Social Security Number
- W-2 forms or tax returns (in case you are self-employed)
- Birth Certificate (if you are jointly applying with your spouse, then his/her birth certificate as well)
- Bank account details
- US citizen proof or lawful alien status (if you are not US born)
- Military Discharge Papers (in case you have served a term in military service)
Once you have al the necessary papers ready, you can make a call (toll free) to the Social Security Office or can apply online.
The last year has seen the largest increase in Social Security checks in the past 25 years with a rate of 5.8 percent. At the same time, as per the present law, the enrollees are also not going to get any cost-of-living adjustment in the next three years. In fact, the increment in Social Security is linked to the Consumer Price Index for the urban workers. It can be recalled here that the Consumer Price Index has decreased last year due to the plunging prices.
It’s the new retirees born in 1947and signed for the Social Security this year, rather than the current beneficiaries, who are going to get affected by the impact of the lack of Social Security boost. These people didn’t reap any benefit from the increase of Social Security last year. Moreover, there is every possibility that their purchasing power may erode by inflation before the cost-of-living increases once again in 2012. Andrew Biggs, a former deputy commissioner of the Social Security Administration and a resident scholar at the American Enterprise Institute has done an analysis to find out the possible impact of it on the retirees. According to the analysis, the new retirees may face a permanent benefit reduction of about 5 percent, while the benefits of the current retirees will remain the same.
Owing to the inflation hitch in 2008, newly retired couples are going to get a monthly Social Security check of $2,235. According to the calculations of Biggs, they will lose almost $1,340 per year. The calculation also says that, if the couple survives until the age of 83, they would lose around $25,000 in their lifetime.
It is not possible to evade this financial loss by delaying your retirement either, unless the cost-of-living gets adjusted, which is again projected to resume in 2012.
Social Security is the national retirement care plan that is available in the US. Pension is one of the important benefits that are provided through the program. The pension is also known as Old-age Insurance benefit or Retirement Insurance Benefits. The pension benefits are applicable after one attains the age of 62 or more.
In most cases, the payments and the benefits that you get from Social Security are made in the third of each month or on the fourth Wednesday. Usually, the benefits that you get that based according to the date of the birth and some other factors.
In order to be covered under the Social Security pensions , there are certain things that one needs to comply with. The requirements of the benefits are made as per the mode of payments and also the age of the applicant. Some of the requirements that you need to follow are:
You need to be of the age of 62 and above to enjoy the benefits
You need to be fully insured in the Social Security System
You either need to apply for the benefits or convert the Disability Insurance Benefits after reaching the age of full retirement
One can apply for pension benefits through a number of ways. You can make applications for Social Security benefits :
By making applications through the net
By making applications through the mail
By applying directly at the office of Social Security
By making applications with the Immediate Claims Taking Unit
There are also some factors which determine the amount of the Social Security pension. Some of them are the amount of the payroll taxes that you pay into the Social Security Trust Fund, the age when you can claim the benefits, the current income that you are earning and also whether you are a part of any type of military service.