The Social Security system in the United States is a federal social insurance program that provides financial support and protection to people in need. Different parts of the program offer assistance to people who are disabled, retired or unemployed. Services are also available that can provide healthcare for children and help for needy families.

The original Social Security system was created by an act of 1935, upon which the modern system, with some amendments, is still based today. The system was created as part of Roosevelt's New Deal during the Great Depression, in order to counteract the poverty that affected many senior citizens in the United States. It was also designed to assist people who were affected by poverty due to unemployment and to provide support for fatherless children and for widows. The Social Security system was created to protect the most vulnerable members of society. Since its creation, the system has evolved and changed, particularly in response to concerns about the provision of adequate coverage. It has also expanded to include workers in a greater range of occupations.

The term Social Security is most often used today to refer to the four main benefits that the system provides in common with most private pension plans. These are retirements, survivorship, death and disability benefits, although the Social Security system does have some additional components. It is estimated that the benefits provided by the Social Security program is currently keeping about 40 percent of Americans aged 65 or over out of poverty.

Social Security is funded through the collection of a dedicated payroll tax, known as FICA (or the Federal Insurance Contributions Act). Both the employer and their employees contribute to this tax. This means that the current generation of workers provides support for the preceding generation, and will then, in turn, be supported by the next generation during their own old age. The amount of benefits that an individual will be eligible to receive during their retirement will be determined by the contributions that they have made during their working life. The more someone has contributed to the Social Security program through FICA, the more they will get in return as a monthly benefit payment when they retire. People who have had higher earnings and who have worked for more years will receive higher benefits. The age at which the individual retires and begins taking their Social Security benefits will also affect the size of the benefits payments that they receive.

In 2008, the Social Security program had more than 50 million beneficiaries and it was making payments in excess of 615 billion dollars a year. The Social Security system is the largest government program anywhere in the world and the largest single expenditure of the federal government in the US. It is expected that the expenditure of the Social Security system will exceed its income from FICA by the year 2017, when it will have to begin using money from the Social Security Trust Fund.

Understanding the social security system and how it affects you is an important part of preparing for retirement. If you are considering your retirement options, nearing retirement age or if you have already retired, but you want to understand more about your Social Security entitlements, then you should spend some time exploring the information on the SSCPSNET.com website.