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How Social Security Works



Social Security is largely funded by payroll taxes. Although it is most commonly known for its retirement benefits, it also provides benefits to spouses, survivors – including children – and disabled Americans. It features protections against inflation and is structured to ensure that those on the lower end of the income scale see the largest income replacement in retirement.

Social Security: A Brief Overview

Social Security is a federal program designed to protect individuals and their families from loss of earnings due to retirement, disability, or death. When signed into law in 1935, Social Security covered only retired workers. However, in 1939 Social Security became a family benefit by expanding benefits to include the spouses and minor children of retired and deceased workers. In 1956, Social Security was further expanded by including benefits for disabled workers. Read



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