Social Security Act

Introduction

The Social Security Act of 1935 established the social insurance system in the United States, including Old-Age, Survivors, and Disability Insurance (OASDI) and the Supplemental Security Income (SSI) program.

Retirement Benefits

Workers earn Social Security credits through covered employment. At full retirement age, workers receive monthly benefits based on their average indexed monthly earnings. Early retirement at age 62 reduces benefits; delayed retirement increases them.

Disability Insurance

Social Security Disability Insurance (SSDI) provides benefits to workers who cannot engage in substantial gainful activity due to a medically determinable physical or mental impairment expected to last at least 12 months or result in death.

Medicare

The Act also established Medicare, the federal health insurance program for persons aged 65 and older and certain younger persons with disabilities. Medicare Part A covers hospital insurance, Part B covers medical insurance, and Part D covers prescription drugs.