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On August 14, 1935, in the midst of the greatest economic depression the United States had ever seen, President Franklin D. Roosevelt signed the Social Security Act into law. In announcing the measure, President Roosevelt acknowledged its limits, but affirmed its purpose:
“We can never insure one hundred percent of the population against one hundred percent of the hazards and vicissitudes of life, but we have tried to frame a law which will give some measure of protection to the average citizen and to his family against the loss of a job and against poverty-ridden old age.”
This vision reflected a profound shift toward recognizing that caring for one another is not just a private obligation, but a collective social responsibility – one that requires government action to ensure dignity and security for all.
Ninety years later, the Social Security Act remains one of the most significant pieces of legislation ever passed in the United States. It has provided economic security for older adults, people with disabilities, and the survivors of workers who have passed. Yet, despite its overwhelming popularity and undeniable impact, Social Security faces a number of challenges that threatens the program's long-term stability. At a moment when the program faces uncertainty, understanding its origins and the reasons it came to be is essential for preserving its future and strengthening it for future generations.
Prior to the creation of Social Security, the idea of a dignified retirement did not exist. Once work ended – whether by choice, job loss, or ill health – there was no guarantee of future income. Economic support and care for those without work was a responsibility that was primarily assumed by the extended family, friends, neighbors, and private charity.
As the United States shifted from an agrarian to an urban society, Americans became less dependent on agricultural production to provide for themselves and their families, and more on cash wages provided by industrial jobs. Between 1880 and 1900, the Industrial Revolution in the U.S. led people to flock to cities, seeing 15 million people settle in urban centers and work industrial jobs. However, with the onset of the Great Depression, unemployment skyrocketed, climbing to 34% for the nonagricultural workforce in 1932. This made it much more difficult for people to provide for themselves and meet the needs of their unemployed, elderly family members, plunging roughly half of the country’s elderly population into poverty.
With such widespread poverty and economic insecurity, the need for the federal government to provide social insurance was much more evident. Although earlier government initiatives were enacted to support struggling Americans, the creation of the Committee on Economic Security in 1934 was the most important development and led to the proposal of the Social Security Act. This marked an important step toward recognizing that care for one another should not rest solely on families and private charity, but should be embraced as a collective responsibility, with the government playing a central role in ensuring dignity and support for all.
When it was signed into law, the Social Security Act created a system of social insurance financed through payroll taxes paid by employees and their employers, meaning that to be able to receive benefits, workers had to pay their way into the program and could then receive benefits relative to their average covered earnings.
However, in its early years, Social Security left many unprotected. Throughout the years, there have been many amendments to the Social Security Act and laws passed to expand coverage. This included:
In February 2024, 67 million people collected Social Security benefits. According to the Center on Budget and Policy Priorities, benefits prevented 16.3 million adults aged 65 and older from falling into poverty in 2023. Without Social Security, the poverty rate that year would have been 37.3%, compared to the actual poverty rate of 10%. However, while the majority of Social Security beneficiaries are older adults, 1 in 5 are people with disabilities or young survivors of workers that have passed, helping other vulnerable populations avoid economic insecurity. Its impact has made the program one of the most popular government-run programs, with a 2024 Pew Research Center survey finding that 79% of U.S. adults believe that Social Security benefits shouldn’t be reduced in any way.
Despite Social Security’s near universal coverage, many people remain without coverage. Social Security requires workers to pay into the program to enjoy its benefits; undocumented workers, like others, contribute to the program through payroll taxes, but are ineligible to receive benefits. In fact, in 2022, undocumented workers contributed $25.7 billion into Social Security. This key exclusion prevents undocumented workers from having a dignified retirement and shifts the responsibility of caring for them away from the state and to their family.
One of the many challenges the program faces is related to its trust fund, which is expected to run out of money by 2033, with current payroll taxes coming in being insufficient to make up for benefits dispersed and only covering about 77% of benefits. This represents a large cut with the most devastating consequences for middle and low-income families.
Compounding these concerns are political pressures. Today, Social Security faces scrutiny from certain groups who believe that “waste, fraud, and abuse” abound, despite no available evidence supporting these claims. Nonetheless, these claims have led to a significant number of Social Security Administration employees being laid off and calls to privatize the program to gain traction. Reduced agency employees threatens customer service, while privatization can have even greater consequences. Furthermore, the recent cuts to other social safety net programs in the recent budget reconciliation process highlight a shift away from the federal government’s responsibility of providing support for the poor, in favor of providing benefits for the rich. Such changes undermine the fundamental principle that caring for one another – especially the most vulnerable – is a shared social responsibility, not a burden to be abandoned.
For its 90-year existence, Social Security has been one of the most popular government-run programs, providing support for the most vulnerable segments of the population and helping lift millions out of poverty. It is a testament to the country’s responsibility to protect people from “hazards and vicissitudes of life” that Roosevelt spoke of. This commitment reflects the understanding that dignity and security are not individual privileges, but collective obligations we uphold together.
While its future is in danger, it also depends on us to act now and ensure that our elected officials make the right choices to keep it running, and build on it to make it inclusive of the communities and populations that have helped sustain it for the entire country, and that includes immigrants without regular status. While it is true that the Social Security Act has had many shortcomings, it was a temporary fix that Roosevelt and lawmakers expected us to keep building on and strengthening. It is our responsibility to ensure it is. As a network of Latin American and Caribbean Immigrant-led organizations, we remain committed to creating a more equitable, sustainable, and dignified way of life for all people in the U.S.
