• 1935: Social Security is created.
•1937: Social Security begins to collect payroll taxes and provides single, lump sum payments to retired workers who paid into the program, but who will not work long enough to be eligible for monthly benefits.
• 1939: Social Security provides benefits to spouses, minor children and survivors of workers who die prematurely.
•1940: Social Security pays out monthly benefits for the first time.
•1950: Social Security adds the first “cost of living adjustment” (COLA) so benefits can keep up with inflation.
• 1956: Social Security provides benefits to disabled workers 50-64 and disabled adult children. Women are permitted to retire early at age 62 for a reduced benefit.
•1961: Social Security allows men to retire early, starting at the age of 62, for a reduced benefit.
•1972: Social Security provides for automatic and annual “cost of living adjustments” (COLAs), beginning in 1975, and increases benefits 20 percent.
•1972: Social Security adds the Supplemental Security Income program, which provides income security for elderly, blind, or disabled persons.
•1977: To extend solvency, the government makes several changes to Social Security. For example, it raises the payroll tax and reduces benefits slightly.
• 1983: In response to Social Security’s financial problems, Congress passes legislation that, among other changes, delays the cost of living increase for 6 months, accelerates the scheduled rate increases in payroll tax, adds Federal employees, including all Members of Congress, and starts taxing a portion of Social Security benefits. It also gradually increases the retirement age from 65 to 67 starting in 2000.
•1993: The government increases the portion of benefits subject to taxation beginning in 1994.
•2000: The government eliminates the Retirement Earnings Test for seniors at or above the normal retirement age, allowing seniors who continue to work to receive full benefits instead of having them reduced based on earnings.
Information provided by AARP. To learn more: www.aarp.org/strengthensocialsecurity.
