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Economic security, 1935-85.

V P Reno, S Grad

    Social Security Bulletin
    |December 1, 1985
    PubMed
    Summary

    Economic well-being has significantly improved for both working and retired individuals since the Social Security Act of 1935. Social security and employer benefits now provide a strong foundation for retirement income, enhancing financial security.

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    Area of Science:

    • Economics
    • Social Policy
    • Gerontology

    Background:

    • The Social Security Act of 1935 marked a pivotal point in improving economic well-being.
    • Significant advancements in employment and a lower dependency ratio have been observed.
    • Work-related employee benefits have expanded considerably alongside Social Security.

    Purpose of the Study:

    • To analyze the evolution of economic well-being for working and retired individuals.
    • To assess the impact of Social Security and employer benefits on financial security.
    • To document the changing economic status of the aged over time.

    Main Methods:

    • Analysis of historical data on employment, wages, and benefits.
    • Review of survey data on the economic status of the aged since 1941.
    • Comparison of income trends for the aged versus the non-aged.

    Main Results:

    • Employer contributions for social insurance and benefits have risen from 1% in 1929 to nearly 20% currently.
    • The income of the aged has grown by approximately 75% over the past two decades, outpacing inflation.
    • Retired workers increasingly supplement Social Security with pensions and asset income.

    Conclusions:

    • Social Security and related benefits form a robust foundation for retirement income.
    • The economic status of the aged has markedly improved, with higher incomes and better health.
    • Individuals are more likely to retire by choice, supported by a broader range of financial resources.

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