The Importance of the Social Security ProgramBy Kenton Koszdin on September 17, 2018 | In Disability Insurance
We hear all the time about how vital the Social Security Program is while also hearing things like the program will go bankrupt, it should be privatized, and more. Not only is Social Security a large part of life for retirees, the disabled, and survivors, but it has helped to decrease the number of elderly that are below the poverty line. It is important to understand just why Social Security is so vital for many in California and around the country.
How Many People Depend on the Social Security Program?
As mentioned, it isn’t just the elderly or the disabled that depend on Social Security. Survivors of the disabled, as well as others, are able to claim a part of the Social Security Program. The most recent studies have determined that over 61 million people in the US depend on one program or another. It provides, on average, $15,000 per year in income. When it comes to seniors, 90% rely on Social Security Program benefits as nearly all of their income.
Who Benefits from the Social Security Program?
It isn’t just retirees that find the Social Security Program beneficial. While they are the majority, those who are disabled, or the survivors of those who are disabled, also benefit. Those who are disabled may be able to claim Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI). This gives them an income when they aren’t able to work.
How is the Social Security Program Funded?
There are a lot of rumors and false information circulating that the Social Security Program will go bankrupt. Because Social Security has its own funding, mostly through the people who will claim Social Security benefits later on in life, it will never go bankrupt. Nearly 80% of the funds that run the Social Security Program come from employees and employers who pay into it. About 5% of the revenues for the program are from the taxes on the income beneficiaries receive. The rest is interest earned on bonds. Revenues from the program are invested into bonds and they are backed by the US government. It also costs less than 1% in administrative costs to keep the program running.
The Kenton Koszdin Law Office is ready to review your case for disability benefits and others provided by the Social Security Program. Message us and we will contact you as soon as possible to discuss your needs with a lawyer who specializes in Social Security cases such as SSI and SSDI and is conveniently located in Van Nuys, CA, serving all the surrounding neighborhoods.