Social Security

Lyric Wallwork Winik
Published: August 7, 2005
Social Security Turns 70

Social Security turns 70 this month. While both sides debate how to keep the program healthy, here are a few fascinating facts about it:

* A legal secretary was the first person to collect monthly benefits. She paid $24.75 in taxes to the program (1937-39) before retiring and got back more than $22,000, living until 1975.

* The tax rate for Social Security (including the employer contribution) initially was 2%; it’s now 12.4%. In 1937, only the first $3000 of income was taxed; today, it’s $90,000.

* Last year, 48 million Americans got Social Security. Until 2004, even felons on the run were allowed benefits by law. A 2001 audit showed that $31 million had been paid to the dead, mostly because of poor record-keeping.

* The average monthly retirement benefit is $955; 40% of Americans over 65 reportedly would be in poverty without Social Security. In general, to qualify, you must spend 10 years in the workforce and earn the minimum each year (now $3680).