Social Security Act facts for kids
The Social Security Act of 1935 is a very important law in the United States. It was signed by President Franklin D. Roosevelt in 1935. This law created the Social Security program. It also set up insurance to help people who lost their jobs. This act was a big part of President Roosevelt's plan called the New Deal, which aimed to help the country recover from the Great Depression.
Contents
What is Social Security?
Social Security is a program that helps millions of Americans. It provides money to people who are retired, disabled, or to families when a parent dies. This money comes from taxes that workers and their employers pay.
Help for Retirees
When people work, a small part of their earnings goes into the Social Security fund. When they retire, usually after age 62 or 65, they can start receiving regular payments. This helps them have money to live on when they are no longer working.
Support for Disabled People
Social Security also helps people who become unable to work because of a serious illness or injury. If a doctor says someone cannot work for a long time, they might get Social Security disability benefits. This money helps them pay for their daily needs.
Aid for Families
If a worker who paid into Social Security passes away, their children or spouse might receive benefits. This is called survivors' insurance. It helps families financially during a very difficult time.
Unemployment Insurance
The Social Security Act also created a system for unemployment insurance. This means that if you lose your job through no fault of your own, you might receive temporary payments. These payments help you pay bills while you look for a new job. Each state manages its own unemployment insurance program, but the Social Security Act set up the basic rules.
Why Was This Law Created?
The Social Security Act was passed during a very hard time in American history called the Great Depression. Many people had lost their jobs, their savings, and their homes. There was no safety net for older people or those who became disabled. President Roosevelt and the 74th United States Congress wanted to create a system that would protect people from poverty. They wanted to make sure that Americans had some financial security, especially in old age or during tough times.
How It Works Today
Today, Social Security is still a very important program. Millions of Americans rely on it every day. It has changed a bit over the years, but its main goal remains the same: to provide a basic level of financial protection for workers and their families.
