Social Security Administration (SSA)

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Definition of 'Social Security Administration (SSA)'

The Social Security Administration (SSA) is a federal agency that administers Social Security, a social insurance program that provides benefits to retired workers, their dependents, and survivors. The SSA also administers Supplemental Security Income (SSI), a program that provides benefits to low-income individuals and families.

The SSA was created in 1935 as part of President Franklin D. Roosevelt's New Deal. The program was designed to provide financial security for retired workers and their families, and to help reduce poverty among the elderly.

Social Security is funded by a payroll tax that is paid by both employers and employees. The tax rate is 6.2% of an employee's wages, up to a maximum amount. The maximum amount of wages subject to the tax is $147,000 in 2023.

Social Security benefits are based on a worker's earnings history. The amount of benefits a worker receives depends on the number of years they worked and the amount of money they earned.

Social Security is a vital program for millions of Americans. In 2022, the SSA paid out over $1.1 trillion in benefits to over 64 million beneficiaries.

The SSA is an important part of the U.S. economy. The program provides financial security for millions of Americans, and it helps to reduce poverty among the elderly. The SSA is also a major source of revenue for the federal government.

The SSA is facing a number of challenges in the coming years. The program is facing a long-term funding shortfall, and it is projected to run out of money by 2035. The SSA is also facing a number of demographic challenges, as the number of retirees is growing and the number of workers is shrinking.

The SSA is working to address these challenges. The agency is taking steps to improve its financial management, and it is working to increase the number of people who are paying into the program. The SSA is also working to make changes to the program so that it can be sustainable in the long term.

The SSA is an important program for millions of Americans. The agency is working to address the challenges it faces, and it is committed to providing financial security for future generations of Americans.

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