2 Facts About Social Security
In 1935, President Franklin Roosevelt signed the Social Security Act, which created a safety net for the unemployed and disabled citizens of America. Social Security also offers life insurance for retirees who are over 65. As of 2019, approximately 96 percent of employees aged 20 to 49 have received life insurance from Social Security. Upon retiring, they make up the beneficiaries who are paid by the program, depending on their average annual income and retirement age. There are some facts you should keep in mind when thinking about Social Security.
Protects the Elderly from Poverty
Nearly 4 in 10 Americans aged 65 or older would live below the poverty line without Social Security benefits. In most states, nearly a quarter of elderly recipients rely on Social Security for 90 percent of their family income. This statistic makes sense, since most elderly Americans rely on taxpayer-provided benefits for most of their income. The United States Census conducted a study that concluded that nearly a third of all elderly Americans would live in poverty without Social Security. With the protections in place, that percentage dropped to 10 percent.
The Sharp Rise in Identity Theft
Unfortunately, identity theft is becoming more common across the country. Several cyber thieves disguise themselves as employees for the Social Security Administration and could secretly use SSN trace software to steal your identity and use your personal savings to their advantage. They steal your social security number to apply for credit cards and obtain insurance benefits that belong to you. Unlike impersonators, Social Security Administration does not request anyone to provide their secret number over the phone. Some thieves also use stolen identity information to sell cards over the dark web to make profit.
Read more: Three Things to Think About Before a Major Investment into Your Own Business
Whether you’re approaching 65 years of age or are fresh out of high school, it’s important to know how Social Security impacts the government and taxpayers that contribute funds from their payroll. You should take the time to familiarize yourself with the benefits Social Security provides to its recipients.
