Social Security

The fight to protect retirement security is not foreign to Steelworkers. We fight for it at the bargaining table, in our statehouses, and in the halls of congress. We know how important it is for all workers to be able to retire with dignity and respect. Today a large piece of many retired Americans’ financial stability comes in the form of Social Security payments. In fact, according to the U.S. Census Bureau’s Survey of Income and Program Participation (SIPP), 49% of Americans aged 55 to 66 have no personal savings at all. And, while many of today’s workers will one day find themselves in some way reliant upon this vital retirement program, most don’t have the time to sift through all the political rhetoric to truly understand what Social Security is, how it works, and why it is so important. Read on for a brief overview of Social Security and why we must protect it.

What is Social Security?

Social Security was created when President Roosevelt signed the Social Security Act as part of the New Deal. In 1935, America was facing one of the worst economic catastrophes in its history, and Social Security was created to promote the economic security of our nation’s people. It was designed to pay retired workers aged 65 and older a continuing income after retirement. Since its creation the program has also been expanded to include:

1939 - Survivors Insurance: For families of deceased workers.

1956 - Disability Insurance: For disabled workers and their families.

1965 - Medicare: Provides health insurance coverage to people 65 and older.

1972 - Supplemental Security Income: A needs based program that provides payments to people who are 65 or older with limited income or resources or are blind or disabled. Children with disabilities can also qualify.

How does Social Security work?

Social Security replaces a percentage of a worker's pre-retirement income based on your lifetime earnings. The amount of your average wages that Social Security retirement benefits replaces depends on your earnings and when you choose to start benefits. Social Security is largely a “pay as you go” program, meaning today’s benefits are funded primarily by the payroll taxes collected from today’s workers. In 2022, 65.8 million people received Social Security benefits and an estimated 180 million people had earnings covered by Social Security and paid payroll taxes. In 2023, the average monthly retirement benefit is $1,827 for an individual. That’s only $21,924 a year to live in America for millions of former workers.

While this program isn’t perfect, today the poverty rate for U.S. seniors is just under 9%. Without Social Security, the poverty rate for our seniors would jump to almost 41%. Any cuts to this program would be devastating to millions of our nation’s most vulnerable.

Retirement Security is the number one issue that our members care about, according to our latest Your Union, Your Voice Survey. Since our founding, the USW has fought to protect our pensions and retirement savings through contract negotiations and legislation. It is literally one of our founding principles. So, while some in Congress like to imply that workers’ reliance on Social Security in retirement is due to their own poor planning and saving, Steelworkers know better. Workers are not the problem!

Go to usw.to/NoCuts to find out how your local can get involved today!

In the 1930s, the Great Depression peaked and working-class people found it harder and harder to provide for their families. Our nation’s seniors were among some of the hardest hit. At that time, many depended on their children to help provide for them in their golden years. However, during the worst economic crisis the country had ever seen, even their sons and daughters were unable to find adequate work.

The primary financial stress that seniors faced was medical care. As life expectancy began to rise, so too did the cost of care. It was clear that something needed to be done. The enactment of the Social Security Act in 1935 was a good first step, but as health care costs continued to skyrocket, affordable, quality health insurance was unattainable for most of the nation, especially our seniors. Thirty years later, after countless legislative solutions to address the problem failed to pass Congress, President Johnson’s plan to create a national health insurance for everyone 65 and older was signed into law on July 30, 1965. It should be noted that this solution was originally proposed by President Truman in 1945 but failed to get the support it needed. President Johnson recognized President Truman’s efforts by signing the Medicare and Medicaid Act into law at the Truman Presidential Library in Independence, MO, with Truman by his side.

Medicare is federal health insurance for anyone age 65 and older, younger people who meet specific eligibility criteria, and individuals with certain diseases. In the first week, over one million people enrolled in the program and today over 63 million people have Medicare coverage. Though Medicare started as a basic insurance program for older Americans, Congress has made changes over the years to provide more and more Americans with access to the quality and affordable health care they need. Some of these changes and additions include:

• Expansions to include younger adults with disabilities and end stage kidney disease.
• Hospice benefits.
• New payment systems to help control costs and allow Medicare to pay fixed rates instead of what hospitals choose to charge.
• Prescription drug benefits and catastrophic coverage.
• Free preventative care benefits including annual physicals, wellness exams, and tests.

While this program isn’t perfect, at its inception in 1965 roughly 50% of our nation’s seniors had health insurance by 1970, that number jumped to 96%. Today over 18% of Americans rely on some form of Medicare for their health insurance coverage. The program is currently projected to be fully funded through 2028. Any cuts to this vital program would create added stress and financial burden to millions of our nation’s most vulnerable.

Retirement security is the number one issue that our members care about, according to our latest Your Union, Your Voice Survey results. However, it comes as no surprise that affordable health care and prescription drugs came in at a close second. That is precisely why we are calling on Congress to raise or eliminate the debt ceiling with no cuts to Social Security, Medicare, or Medicaid. Will you join us?