Legal Definitions - Social Security Act

The Social Security Act is a foundational federal law in the United States, originally passed in 1935 during the Great Depression. Its main purpose was to establish a nationwide system of social insurance to provide economic security for Americans.

This Act created various benefit programs, most notably:

• Retirement Income: Providing financial support for older workers who have retired.
• Survivors' Benefits: Offering financial assistance to families when a primary wage earner passes away.
• Disability Benefits: Supplying income to individuals who are unable to work due to a severe medical condition.

The Social Security Act also established the Social Security Administration, the federal agency responsible for managing and administering these vital programs.

Examples:

• Example 1: After working for over 40 years, Maria decides to retire at age 67. She begins receiving monthly payments from the Social Security Administration, which help cover her living expenses and healthcare costs in her retirement.

  Explanation: This scenario illustrates the "old-age benefits" component of the Social Security Act. Maria's regular payments are a direct result of the system established by the Act, providing her with a predictable income stream in her later years.

• Example 2: John, a father of two young children, unexpectedly passes away. His surviving spouse, Sarah, applies for and receives monthly financial support for herself and their children from the Social Security Administration.

  Explanation: This demonstrates the "survivors' benefits" aspect of the Social Security Act. The Act provides a crucial safety net for families who lose a breadwinner, ensuring some financial stability during a difficult time.

• Example 3: Emily, a software engineer, develops a severe chronic illness that prevents her from performing her job or any other substantial work. After a thorough application process, she is approved to receive monthly disability benefits.

  Explanation: While not explicitly listed in the source definition, disability benefits are a significant part of the "system of benefits" created by the Social Security Act. This example shows how the Act provides financial assistance to individuals who become unable to work due to a qualifying disability, offering them economic support when they cannot earn an income.