In the United States, before 1935, very few workers in the United States worked in jobs covered by pensions. Of those with coverage, many never received any benefits because their benefits were not guaranteed. The original Social Security Act was passed in 1935. It had two components: a Social Security retirement benefit that applied only to workers and a welfare program for the needy elderly called Old Age Assistance. The welfare program was initially more popular because …
showed first 75 words of 718 total

showed last 75 words of 718 total
…once again in a period of partially forward funding later benefits. One unintended consequence of the success of Social Security is that the number of men in their 60's who are working has declined from over half to about one-sixth. Several responses have been suggested. In 1996, the earning test was reduced and in 2000 it was eliminated. How effective this will be in encouraging work remains to be seen since private pensions still encourage early retirement.