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 "New Deal" — a set of programs meant to help Americans survive the economic crisis. At that time, most older adults had no savings and no pension. Many were living in poverty. Social Security was designed to provide a basic income for people aged 65 and older who had worked and paid into the system.

The first person to receive a Social Security check was Ida May Fuller, a retired schoolteacher from Vermont, on January 31, 1940. She had paid into the system for only three years but received benefits for 35 years, collecting far more than she had contributed.

Key Takeaways

  • Franklin D. Roosevelt signed the Social Security Act on August 14, 1935, during the Great Depression when many older Americans had no income or savings.
  • The program did not begin paying benefits until 1940, giving the government five years to set up the system and collect initial payroll taxes.
  • Social Security was created as part of Roosevelt's New Deal, a broader effort to help Americans survive economic hardship.
  • The first beneficiary, Ida May Fuller, received her first check in January 1940 and collected benefits for 35 years.
  • The original program covered only workers in commerce and industry; farm workers, domestic workers, and the self-employed were added later.

How Social Security worked when it started

The original 1935 Social Security program was much smaller than it is today. It covered only workers in commerce and industry — roughly 60 percent of the workforce. Farm workers, domestic workers, government employees, and the self-employed were not included.

The initial payroll tax was 1 percent on wages up to $3,000 per year, split between employer and employee. Workers had to be at least 65 years old to receive benefits. There were no survivor benefits or disability payments in the original law — those were added later.

The program was designed to be self-funding through payroll taxes, not through general tax revenue. Workers and employers both contributed, and those contributions paid for current retirees' benefits. This structure remains the same today.

Why Roosevelt created Social Security

By 1935, the Great Depression had been underway for six years. Unemployment was around 20 percent. Banks had failed, wiping out savings. Older workers who lost their jobs had almost no way to survive. Many adult children could not afford to support aging parents.

Before Social Security, the only safety net was local poor relief — charity run by cities and counties that was often inadequate and humiliating. Some states had old-age pensions, but they were small and inconsistent. Roosevelt saw Social Security as a way to give workers dignity in retirement by letting them draw on money they had contributed themselves.

The program was also meant to boost the economy by putting money in the hands of older people who would spend it, and by freeing up jobs for younger workers who might otherwise have to support elderly relatives.

How the program changed after 1935

Social Security has been expanded several times since Roosevelt signed it. In 1939, just four years after the original law, Congress added survivor benefits for the families of workers who died, and benefits for retirees' spouses and children. The retirement age remained 65.

In 1956, disability benefits were added, allowing workers under 65 who could not work due to a severe medical condition to receive payments. In 1965, Medicare was created as a companion program to help pay for medical care for people 65 and older.

Coverage was gradually expanded to include farm workers, domestic workers, the self-employed, and most government employees. The payroll tax rate and the wage cap have both increased many times over the decades to keep the program solvent as the population aged.

What happened to the original Social Security office

The Social Security Administration was created as a separate federal agency in 1946, eleven years after the program began. Before that, Social Security was part of the Department of Labor. Today, the Social Security Administration is an independent agency that handles retirement, survivor, and disability benefits for millions of Americans.

The original Social Security office building still stands in Baltimore, Maryland. It now serves as the headquarters of the Social Security Administration. The building was constructed in the 1930s and has been expanded several times as the program grew.

How to learn more about Social Security's history

The Social Security Administration maintains a detailed history on its official website, including timelines, historical documents, and information about how the program has changed. You can also find historical information through the Library of Congress and the National Archives.

If you are researching your own Social Security record or want to understand how your specific benefits were calculated, you can create an account on ssa.gov and view your Social Security Statement. This shows your earnings history and estimates of your future benefits based on current law.

Frequently Asked Questions

Did any president before Roosevelt try to create Social Security?

No president before Roosevelt created a federal Social Security program, though some states had old-age pension programs in the 1920s and early 1930s. Roosevelt's program was the first national system. A few other countries, including Germany and Austria, had created national pension systems decades earlier.

Could you receive Social Security benefits before 1940?

No. Although the Social Security Act was signed in 1935, the program did not begin paying benefits until January 1940. The five-year gap allowed the government to set up the system, hire staff, and collect initial payroll taxes from workers and employers.

Was Social Security supposed to be the only retirement income for older people?

No. Roosevelt and Congress designed Social Security as a foundation, not a complete retirement income. The program was meant to prevent poverty in old age, but workers were expected to have savings, pensions, or family support as well. That remains true today.

Has the retirement age of 65 stayed the same since 1935?

No. The full retirement age has gradually increased. For people born in 1943 or later, the full retirement age is 66 or 67, depending on birth year. You can still claim benefits at 62, but the monthly amount will be permanently reduced. The age was 65 in 1935 because life expectancy was much lower then.

What would have happened to Social Security if Roosevelt had not created it?

Without Social Security, older Americans would have relied on family support, local charity, or state programs — the same systems that existed before 1935. Many would have lived in poverty. Some historians believe the lack of a safety net contributed to social unrest during the Depression.