Demystifying Social Security: Up Close and Very Personal!
Full and original article published in Physician’s Money Digest
The Social Security Act was passed in 1935 as a safety net for senior citizens. At the time, during the Great Depression, the poverty rate of senior citizens exceeded 50 percent. Since then, it has been amended to encompass several social welfare and social insurance programs, such as Medicare and Medicaid. These programs cover workers in situations of retirement, disability, and death.
Employees contribute 6.2 percent of their pay into the Social Security Trust Fund, and their employer matches this. For 2011 and 2012, this has been reduced to 4.2 percent. Employees also pay 1.45 percent of their pay into Medicare, which is also matched by their employer.
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