14.1 What was the original intent of Social Security? What
additional
programs have been added?
The original intent of Social Security was to provide a monthly
benefit for workers who retired at age 65 financed by contributions
these workers made over their career. The program has expanded over
the years by, among other changes, extending benefits to the
retiree's family, the survivors of deceased workers, providing
benefits for the disabled, allowing retirement at age 62,. and
providing cost-of-living increases.
14.2 Is SSI supported by the same contributions as the funds put
into
Social Security?
No, SSI is not paid for by Social Security Trust Fund dollars. SSI
is funded by general revenues derived from the federal income tax
and other sources. SSI provides old age, blind,.and disability
benefits to persons with very low incomes who meet the income and
assets tests of the program. The disability portion of SSI uses
the same medical standard of disability to determine eligibility
for those benefits. Social Security benefits, in contrast, are paid
for by the contributions of covered workers, and benefits are based
on the worker's earnings record.
14.3 You mentioned a three legged
stool (savings, retirement plans, and Social Security).
The retirees have a mix of 1 or 2 or sometimes
3 legged stools. The one legged stools and two legged are at risk
for poverty.
Social Security is the strongest and most universal "leg" in the
retirement "stool".
As mentioned by the real life examples at your table, many people
are missing one or more of the three legs of the stool, while others
have one or two legs that are not sufficient to carry their share
of the support required to keep the "stool" upright. Elderly in
the bottom fifth of income distribution have a "stool" that looks
like this (percentage of income provided by source): Social Security,
over 80%; assets, 3%; pensions, 3%; earnings, 0%. Higher income
elderly have four strong legs in their "stool", including the
ability and opportunity to continue earnings through employment:
Social Security,. 23%; assets, 24%; pensions, 21%;earning
29%; public assistance, 0%; and other, 3%.
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