Social Security Program

Social Security Program

According to DeWitt (2010), the Social Security Program is accessible to every family, in one way or another, having an impact on the life of every American citizen. It is regarded as a basis for economic security for retirees, disabled individuals, along with dependants of the retired, disabled or deceased workers. According to DeWitt (2010), approximately 169 million American citizens remit Social security taxes while receiving benefits on a monthly basis. Additionally, 1 in every four families acquires income from the plan.

In this case, it is regarded as a pay-as-you-go program, meaning the staff members remit a specified amount into the program. In return, money is remitted as a monthly revenue to the program’s beneficiaries.  According to Coile and Levine (2011), the average monthly stipend was $1,391 each month for retired workers, widows above the age of 60 obtained $1,307, and workers with a disability received $1,172. Moreover, A widowed spouse and two kids are entitled to $2,264 every month and $2,278 for a disabled worker’s spouse.


As soon as the Civil War ended, a majority of the American citizens were either survivor, disabled, or widowed. The figures far outweighed that any preceding warfare experienced on American soil. This resulted in a realization that the nation greatly requires a pension program. However, the proposal faced opposition from a section of the officials due to various reasons. Foremost, the opposition believed it would lead to a reduction in the labor force. However, program supporters argued that the retirement of older working personnel might generate space for young men, which was a significant concern during the great depression. Despite the excellent outcomes attributed to the proposal, many citizens still believed it was a decree of socialism.

In June 1934, President Roosevelt instituted the Committee on Economic Security and was given the mandate of drafting an economic security proposal. Led by the first woman to hold a cabinet position in the United States, Labor Secretary Frances Perkins, the committee designed the Social security law intending to provide financial safety to American citizens. The proposal comprised an old-age annuity framework, redundancy cover financed by proprietors, financial aid for widows and disabled persons, and health cover for individuals with financial constraints. On August 14th, the President enacted the Social Security Act after bill was unanimously passed by Congress.

Nonetheless, the act did not provide a lasting solution to the emerging challenges. According to Milligan and Wise (2011), a majority of women and other minority groups were excluded continuously from receiving benefits of the cover. It is also denied individuals who worked on an intermittent basis, principally dominated by women and minority populations. The act also excluded a section of job classifications-for instance, personnel in the agricultural sector, domestic service, government members of staff, teachers, nurses, hospital personnel, and social workers. Numerous amendments were enacted in the Social Security Act to respond to the economic worries and rising concerns arising from the alteration in gender roles and the position of the marginal groups. The social security act’s modifications have established a balance between the promotion of fairness and attempts to offer enough financial security to every American citizen.

Current Structure

Currently, the program continues to be a critical aspect for the planning of retirement benefits for every eligible American citizen, particularly considering the low saving rates. The Social Security Administration offers over $700 billion every year to approximately 50 million orphaned kids and disabled individuals. The reimbursements financed through the taxes remitted by companies and personnel. According to Milligan and Wise (2011), the program’s annual net cost was estimated at $1 trillion. The figure is projected to be around 28% of the total federal spending by 2024. Members of staff make a significant payment to the program and Medicare through the Federal Insurance Contributions Act or the Self-Employed Contribution Act. The deductions of taxes are made from the workers’ payments, and remission of benefits is done every month to eligible persons.

According to Milligan and Wise (2011), the current tax rates for the program stand at 6.2% for the employer and 6.2% for the employee. The actual rates for the Medicare program comprise of 1.45% for both the employer and the employees. Additionally, extra taxes are applicable to a person’s Medicare earnings that surpass a specific amount founded on the filing status of a taxpayer. Establishments are accountable for reserving 0.9% extra Medicare Income tax on a person’s incomes remunerated in surplus of $200,000 every year, devoid of considerations of filing status. A proprietor is compelled to commence the withholding of the extra Medicare taxes in the payment duration if an employee receives in surplus of $200,000.  The business continues withholding in every payment period until the end of the calendar year.

Calculation of Benefits

Payments made through the social security program are computed by utilizing 35 maximum earning duration of an individual’s career and are modified if inflation is experienced. If individuals work for more than 35 years, the lowest-earning years are not integrated into the calculations, resulting in higher payments. For instance, for an individual to become entitled to social security payments, the beneficial amount is computed by multiplication of $895 of the regular indexed monthly salaries by 90%. The remaining income is increased by 32% to $5,397 and incomes over $5,397 by 15% (Milligan & Wise, 2011). Individuals that do not work for 35 years have zeros averaged into the calculation and receive reduced expenses. An individual’s age plays a significant role in determining payment amounts. An individual’s benefits are reduced if claims are made before attaining the retirement period; at the age of 65.

Other Benefits

The benefits of social security stretch further than the only retirement. If an individual meets the work requirements despite not attaining the required retirement age, one is eligible to receive reimbursements equivalent to the full retirement benefits. A surviving spouse or disabled kids are also entitled to full benefits founded on the income record. According to Coile & Milligan (2016), the existing laws legalize same-sex spouses’ eligibility to gain access to the benefits, if the state of residence recognizes the validity of the marriage. Therefore, this means that if a specific state recognizes same-sex partnerships, they may also recognize partnerships from other states.


The President states that the well-being of the citizens measures the government’s failure or success. The nation’s social security program has offered many American citizens the opportunity to access financial aid in times of need and, therefore, consider social security funding the primary source of income. Despite the pitfalls, the program is considered one of the most significant aspects as it offers a retirement lifeline. This allows the citizens to retire without having to depend on other members of the family comfortably. The program remains to be the most effective and productive since its conception.




Coile, C. C., & Levine, P. B. (2011). Recessions, retirement, and social security. American Economic Review101(3), 23-28.

Coile, C. C., & Milligan, K. (2016). Social security programs and retirement around the world: disability insurance programs and retirement. University of Chicago Press.

DeWitt, L. (2010). The development of social security in America. Soc. Sec. Bull.70, 1.

Milligan, K., & Wise, D. A. (2011). Social Security Programs and Retirement Around the World: Historical Trends in Mortality and Health, Employment, Disability Insurance Participation and Reforms-Introduction and Summary. NBER Working Paper, (16719).

Calculate your paper price
Pages (550 words)
Approximate price: -


Quality Research Papers

If you’re looking for an Essay writing service to help turn all of your hard work into a product that readers can appreciate, then look no further than our essay writing website. With a team of writers who go the extra mile, and customer support representative’s around-the-clock eager to assist you, we are ready to ace any exam or provide any posterity with what they need.

Top Assignment Writers

Our essay writers are experienced professionals who have the knowledge to write an essay about any subject matter in an interesting way while maintaining academic integrity. Our professional essay writers work day and night to ensure that you receive quality essays on time without any delay or interruption. With many years of experience behind us, our essay writing website is now led by professionals with extensive knowledge in various fields of study.

Zero Plagiarism

For any write my essay for me request, you will never need to worry about plagiarism or getting caught up in the stress of completing assignments when you use our professional services! Get started today by ordering your first paper from us and we'll give you 10% off!

24/7 Customer Support

We are available 24/7, 365 days a year to help you out with your academic needs! if you have any "do my paper" questions or technical concerns, simply chat with one of our essay writing customer service representatives via the Chat Window on the bottom right corner of this screen

Prompt Delivery and 100% Money Back Guarantee

These academic experts are distinct from most other essay writing websites because they have doctoral degrees and decades of professional experience in academia. And because they know how overwhelming college life can be, we waive all minimum deadlines so you can focus on studying without worrying about your assignment always hanging over your head.

Free Revisions

Our Academic writers are confident and highly capable to take on any challenge ranging from a simple high school essay, question and answer assignment help, PowerPoint Presentation, research paper, dissertation, among others . However, we do not allow customers who abuse the free revisions privilege.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

When the world rushes and deadlines increase, it's hard to put your best foot forward. is here to help you with top quality essays on all topics, from history papers and engineering design descriptions to sociology case studies. For any write my essay for me request, you can count on a professional team of essay writers who are well experienced and researched in their field as they develop an original paper for you with 24/7 customer support.


Homework Help Service is an excellent solution for all your problems regarding writing an outstanding admission essay. You don't need to worry about anything anymore because we will provide you with high-quality papers written by expert writers who know how to write professionally!


Paper Formats and Types

From time management skills to APA format citations; from MLA formatting rules for research papers; from college application essays where the stakes are high--all these aspects of academic life become clearer as we write it all down on paper! is a professional essay writing service that provides students with well-researched, high quality essays on any topic and at any level of study.


Editing & Proofreading

Some of our clients prefer to write their essays themselves and have a third-party like proofread it for errors after they are done writing. We have a skilled team of editors who examine your paper closely, looking out for any mistakes that may lessen the appeal or effectiveness of the essay as well as make amends in order to better improve its overall quality before you submit it anywhere else! For all your editing needs, turn to


Revision Support

You work hard at your academics, and you should be rewarded, with a revision or modification for free on any order from a discursive essay , assignment to dissertation papers.