What is Social Security?

Signed into law by President Franklin D. Roosevelt in 1935, Social Security is the principal retirement insurance program in the United States.

Social Security provides a guaranteed income each year for more than 47 million retirees, family members of workers who died and people with disabilities. About 30 percent of Social Security beneficiaries receive survivor or disability benefits.

Nearly two-thirds of retirees count on Social Security for most of their retirement incomes.

Social Security is a safety net that keeps retirees out of poverty. Between 1960 and 2004, Social Security helped cut the poverty rate among seniors by more than two-thirds, from 35 percent to 10 percent.

Social Security beneficiaries earned their benefits by paying into the system throughout their time at work.

We must strengthen Social Security, but we must take the time to get it right. Social Security is a sound system that can meet 100 percent of its obligations until 2042 (some projections say 2052). After 2042, if no changes are made, funds from Social Security payroll taxes will be sufficient to finance nearly 70 percent of the payments to beneficiaries.

Administrative costs for Social Security are less than 1 cent per dollar paid out in benefits. This is much lower than the average administrative costs of 12 to 14 percent for private insurers.

Privatization backers are trying to scare Americans into believing Social Security faces a crisis so they can sell privatization. But while Social Security does face problems that must be addressed, privatization will make the situation worse, not better.

In fact, under privatization proposals

• The average worker would lose $152,000 in guaranteed retirement benefits.

• Guaranteed benefits would be cut by 40 percent even for workers who don’t choose to have a privatized account.

• For workers who do choose privatized accounts, the government will take back 70 cents in Social Security benefits for every $1 in their accounts. That’s on top of the 40 percent guaranteed benefit cut.

 

TAKE ACTION!

You can help preserve Social Security by volunteering to:

  • Circulate a pro-Social Security petition.
  • Contact your elected officials.
  • Write a letter in support of Social Security to the editor of your local paper.
  • Recruit volunteers.

Please volunteer today by filling out our on-line volunteer form.

Get the Facts on Social Security

What is Social Security? Learn about one of the most successful government programs in the history of the U.S.

What would privatization mean? Higher fees for Wall Street and lower Social Security benefits and more risk for you and your family.

Charts and graphs from the AFL-CIO that tell the story of Social Security.

Information on Social Security recipients in Pennsylvania by Congressional District.

Links to more information on the Social Security debate from the coalition of organizationsworking to protect Social Security.