Social security is a program established by the government which aims to provide insurance to the general public. It is meant to provide citizens protection against social conditions such as old age, disability, poverty, unemployment, and so on. Different countries have varying structures when it comes to social security, but the basic idea is the same.
In the United States, the Social Security system was established by President Roosevelt in 1935. It was part of the then President’s New Deal. The driving force behind the establishment of Social Security back then was the Great Depression, which placed a lot of Americans in bad financial status.
Social Security is dependent on the contributions made by the citizens of a country. In most countries, workers are required to pay a certain part of their wages to Social Security. This payment is usually automatically deducted by the company before the worker receives his wages. The premise is that the worker will get his money back in one way or another. If he finds himself out of employment due to a qualifiable condition, he can avail of the benefits that the Social Security system offers. When he retires, he will also be able to avail of retirement benefits, dependent on his contributions.
In the recent years, many controversies have come up regarding the efficiency of Social Security. Many workers feel that the benefits they receive are not at par with the contributions they make. There are many factors contributing to this discontent, and governments have been having to find solutions to the flaws of Social Security.