Will it or won’t it be around when you retire? That is the question that millions of Americans ask themselves everyday when they see a percentage of their pay checks heading to FICA, or Social Security.
In 1935 President Franklin D. Roosevelt signed into law OASDI (Old Age Survivors and Disability Insurance) or sometimes better known back then as RSDI (Retirement, Survivors and Disability Insurance). Initially when signed into law, Social Security even covered unemployment insurance.
Through a deduction of payroll taxes, FICA, which stands for Federal Insurance Contributions Act, are set aside for when individuals reach a certain age to receive benefits, which comes in the form of retirement, survivorship, death and disability.
In 2010, 54 million people were receiving Social Security benefits, while 157 million people were paying into the fund; of those receiving benefits, 44 million were receiving retirement benefits and 10 million disability benefits.
By dollars paid, the U.S. Social Security program is the largest government program in the world and the single greatest expenditure in the federal budget, with 20.8% for social security, compared to 20.5% for discretionary defense and 20.1% for Medicare/Medicaid.
For all of you who have contributed to this fund for so many years, let us keep the ongoing success of this program in our prayers.