Social Security started in 1935

The Social Security program was created by the Social Security Act, signed into law by President Franklin D. Roosevelt on August 14, 1935. The first monthly benefit payments went out in January 1940, more than four years after the law passed. The program began as a response to the Great Depression, when millions of older Americans had lost their savings and had no way to support themselves.

The original program was much smaller than it is today. It covered only workers in commerce and industry — farm workers, domestic workers, and government employees were excluded. The first person to receive a monthly benefit was Ida May Fuller, a retired legal secretary from Vermont, who got her first check on January 31, 1940.

Key Takeaways

  • Social Security was signed into law on August 14, 1935, but the first monthly payments did not begin until January 1940.
  • The original program covered only certain workers in commerce and industry, leaving out farm workers, domestic workers, and government employees.
  • The program expanded over time to cover more workers and to add benefits for spouses, children, and disabled workers.
  • Today, Social Security covers nearly all workers in the United States, including self-employed people and most government employees.

Why the program was created

Before Social Security, there was no federal safety net for older people. Many had worked their entire lives but had no pension, no savings, and no way to pay for food or housing once they could no longer work. During the Great Depression, the situation became a crisis — families lost everything, and elderly relatives often had nowhere to turn.

Roosevelt's administration designed Social Security as an insurance program, not charity. Workers and employers both paid into a fund, and workers received benefits based on what they had paid in. This framing made the program politically acceptable at the time, even though it was a major expansion of federal power.

How coverage expanded after 1935

The original law left out large groups of workers. Farm workers and domestic workers — many of them Black workers in the South — were not covered. Self-employed people could not participate. Government workers had their own pension systems and were excluded.

Congress expanded the program gradually. In 1950, farm workers and domestic workers were added. In 1956, the program began paying benefits to disabled workers, not just retirees. In 1965, coverage expanded to include most government employees. By the 1980s, nearly all workers in the United States paid into Social Security, with only a few exceptions like some state and local government employees who had their own pension systems.

The program also added benefits for family members. In 1939, Congress added survivor benefits so that if a worker died, their widow and children could receive payments. Later, benefits for spouses and ex-spouses were added.

The first benefit payments and early recipients

Ida May Fuller was not the first person to pay into Social Security — she was simply the first to receive a monthly benefit check. She had paid $24.75 into the system over three years of work, and her first check was for $22.54. She lived to be 100 years old and received over $22,000 in total benefits, far more than she had paid in.

The early years of the program moved slowly. By the end of 1940, only about 222,000 people were receiving monthly benefits. The program did not reach 1 million beneficiaries until 1942. Today, more than 67 million people receive Social Security benefits each month.

Changes to the program over decades

The benefit amount and the rules for receiving benefits have changed many times since 1940. In the early years, the program paid very small amounts — the average benefit in 1940 was about $22 per month. Congress has raised benefits many times, and since 1975, benefits have been adjusted automatically each year based on inflation.

The age at which you can receive full benefits has also changed. When the program started, full retirement age was 65. In 1983, Congress raised it gradually, and today it is 66 or 67 depending on what year you were born. The earliest age you can claim benefits remains 62, but claiming early means a permanently lower monthly payment.

The tax rate paid by workers and employers has also increased. In 1935, the combined tax rate was 2 percent. Today, workers and employers each pay 6.2 percent on wages up to a certain limit, for a combined rate of 12.4 percent.

How Social Security works today

Social Security is still funded the same way it was in 1935 — through payroll taxes paid by current workers and their employers. Those taxes go into a trust fund that pays benefits to current retirees, disabled workers, and survivors. You earn credits toward benefits by working and paying taxes; most people need 40 credits (roughly 10 years of work) to receive retirement benefits.

The program is run by the Social Security Administration, a federal agency. You can learn about your own benefits by creating an account on ssa.gov, where you can see your earnings record and get an estimate of what your benefits might be.

Frequently Asked Questions

Was Social Security the first government retirement program in the world?

No. Germany created the first government-run retirement program in 1889 under Chancellor Otto von Bismarck. Several other countries had programs before the United States. Social Security was the first major federal retirement program in the United States, but it was not the first in the world.

Why did it take so long for the first payments to go out?

The Social Security Administration had to be built from scratch — there were no computers, no databases, and no existing government agency to run the program. Workers had to register, earnings records had to be collected and verified, and the entire system had to be set up by hand. The delay also allowed the trust fund to build up money before payments began.

Did everyone have to pay into Social Security when it started?

No. Farm workers, domestic workers, government employees, and self-employed people were not covered by the original law. Many of these groups were added later, but some government employees still have their own pension systems instead of Social Security.

Has Social Security always paid the same amount to everyone?

No. Benefits are based on how much you earned during your working years. Higher earners receive higher benefits, but there is a maximum benefit amount. The program also pays different amounts to spouses, children, and survivors based on the worker's benefit.

Can I find out how much I paid into Social Security?

Yes. You can create a my Social Security account at ssa.gov to see your complete earnings record and get an estimate of your future benefits. You can also call Social Security at 1-800-772-1213 or visit a local office to request this information.