Franklin D. Roosevelt signed Social Security into law in 1935
Franklin D. Roosevelt created Social Security during his first term as president. He signed the Social Security Act on August 14, 1935, during the Great Depression. The program began paying benefits in 1940, five years after it was signed into law.
Roosevelt introduced Social Security as part of his broader set of economic programs called the New Deal. The goal was to provide income to older workers, people with disabilities, and surviving family members of workers who had died. At the time, most older Americans had no savings and no pension, and many were living in poverty.
The program was controversial when it passed. Some people argued the government should not run such a program. Others thought it did not go far enough. But Congress voted to pass it, and it has remained in place for nearly 90 years.
Key Takeaways
- Franklin D. Roosevelt signed the Social Security Act on August 14, 1935, during his first term as president.
- Social Security was created as part of Roosevelt's New Deal response to the Great Depression and widespread poverty among older Americans.
- The program did not begin paying benefits until 1940, five years after it was signed into law.
- Social Security has been modified many times since 1935, but the basic structure Roosevelt created remains the foundation of the program today.
Why Roosevelt created Social Security in 1935
Before Social Security, most older Americans depended entirely on their families or charity to survive. There was no federal program to help them. During the Great Depression, which began in 1929, millions of people lost their jobs and their savings. Older workers who lost work had almost no way to recover.
Roosevelt believed the federal government had a responsibility to protect people from poverty in old age. He also saw Social Security as a way to help the economy recover. If older people had income, they would spend money, which would help businesses and create jobs.
The Social Security Act was one of the largest pieces of legislation Congress had ever passed. It created not only retirement benefits for older workers, but also benefits for people with disabilities and for children and spouses of workers who died. It also created unemployment insurance and aid to poor families with children.
How Social Security worked when it first started
The original Social Security program was different from what exists today. When it began paying benefits in 1940, only retired workers could receive them. Survivors' benefits and disability benefits were added later.
The first person to receive a Social Security check was Ida May Fuller, a retired schoolteacher from Vermont. She received her first check on January 31, 1940. She had paid into the system for only three years but lived to be 100 years old and collected over $22,000 in total benefits.
The original law set the retirement age at 65. It also required workers to have worked in a job covered by Social Security for at least 10 years to receive benefits. These rules have changed over time, and today the full retirement age is between 66 and 67 depending on when you were born.
Changes to Social Security since Roosevelt signed it
Congress has changed Social Security many times since 1935. In 1939, just four years after it was signed, Congress added survivor benefits so that the families of workers who died could receive income. In 1956, disability benefits were added for workers under 65 who could not work.
In 1965, Medicare was created as a companion program to Social Security. In 1972, Congress increased benefits by 20 percent and changed how benefits are adjusted each year to keep up with inflation. In 1983, after a period when the program was running out of money, Congress raised the payroll tax and gradually increased the full retirement age from 65 to 67.
Today, Social Security is funded by a payroll tax on workers and employers. Workers pay 6.2 percent of their wages, and employers pay 6.2 percent. Self-employed people pay both portions, for a total of 12.4 percent. This money goes into a trust fund that pays current benefits and is supposed to be saved for future years.
How Roosevelt's program became the largest federal program
Social Security is now the largest federal program in the United States by the number of people it serves. In 2024, over 67 million people receive Social Security benefits each month. That includes retired workers, people with disabilities, and family members of workers who have died.
The program has grown far beyond what Roosevelt originally designed. When it started, life expectancy was much lower, so fewer people lived long enough to collect benefits. Today, people live much longer, and more people receive benefits for more years. The program has also expanded to cover more types of workers and more types of benefits.
Despite these changes, the basic idea Roosevelt had remains the same: Social Security provides income to people who are retired, disabled, or whose family member worked and died. It is funded by workers' payroll taxes and is meant to be a foundation of retirement income, not the only source.
Frequently Asked Questions
Did any president before Roosevelt try to create Social Security?
No president before Roosevelt created a federal Social Security program. Some states had their own programs for older people or people with disabilities, but there was no national program. Roosevelt was the first to propose and sign a federal law creating Social Security.
Has any president tried to eliminate Social Security since Roosevelt created it?
No president has successfully eliminated Social Security. Some presidents and members of Congress have proposed changes, such as raising the retirement age or changing how benefits are calculated, but the program itself has remained in place since 1935.
When did Social Security start paying benefits?
Social Security began paying benefits on January 1, 1940, more than four years after Roosevelt signed the law. The delay allowed the program time to set up its systems and for workers to pay into the system before benefits began.
How many people received Social Security when it first started?
Very few people received benefits when the program first started. Only about 222,000 people were receiving benefits by the end of 1940. Today, over 67 million people receive benefits each month, making it one of the largest programs in the federal government.