2. •The 1935 Social Security
Act aimed to establish a
system of income for older
persons so they can
continue to support
themselves financially.
• Gives all People a basic level
of security to avoid financial
disaster.

3. • Social Securities greatest aim
is to the dignity of our social
value and to foster human
interdependence.
• The secondary purpose of social
security was to ensure some basic
protection for the older adults who
needed it the most.

4. Social Security is financed through
separate sources…
1.) Old-Age and Survivors Insurance (OASI)
2.) Disability Insurance (DI)
3.) Hospital Insurance (HI), which is funded
through Medicare.
4.) Revenues for the supplemental
insurance portion of Medicare.

5. • The Social Security Trust Funds
raise revenues equally from the
mandatory participation and
contributions of employees and
employers through payroll taxes.
• Funds are also raised from income
based on current tax revenues.
•Coverage now insures ninety-four
percent of current workers.

6. • Social Security shouldn’t be the sole source
of retirement income, but protection against
financial poverty.
• Social adequacy refers to a shared
societal responsibility and mutual
obligation to provide a basic standard of
living for all potential beneficiaries
regardless of the size of their economic
contributions.
• Individual equity refers to an
individual’s benefits that reflect that
person’s actual monetary
contributions proportionate to what
they have paid into the system.

7. • Current workers support
retired and disabled workers.
• Payroll taxes are invested in
special US government bonds,
then flow out to eligible
beneficiaries.
•Today’s retirees won’t get
back their contributions until
seven years of getting social
security.
•Young workers today
shouldn’t expect to get their
contributions back for eleven
years of getting social security.

8. • By the year 2030, 1 out of 5 people will be over the
age of sixty-five
• With so many people retired will there be enough
social security to go around?

9. •When Social Security was first enacted, life
expectancy was 61 years, while it is 78
years today.
•The ratio of workers to retiree should be 3
to 1 by 2030 and around 2 to 1 2050.
•Polls show that young Americans support
protecting social security even though
many lack confidence in its future.

10. • The Social Security Administration sends statements to US workers that are over the age
of 25.
• These statements lists the years of employment, earnings, and Social Security taxes paid
each year. They also list the persons benefits considering when they retire. This gives the
worker a heads up on planning for the future.

11. References Slide
Hooyman, Nancy R., and H. Asuman Kiyak. Social Gerontology: A
Multidisciplinary Perspective. Boston: Allyn and Bacon, 1988. Print.