When Social Security was first established, how many workers paid in for each retiree that was receiving benefits?1181016
Question
When Social Security was first established, how many workers paid in for each retiree that was receiving benefits? 1181016
Solution
When Social Security was first established in the United States in 1935, the system was designed with a relatively low number of retirees receiving benefits compared to the number of workers paying into the system. At that time, for every retiree receiving Social Security benefits, there were approximately 16 workers contributing to the program. This high ratio was due in part to a lower life expectancy and fewer retirees as a proportion of the overall population.
Over the years, this ratio has changed significantly due to various factors such as increased life expectancy, demographic shifts, and changes in birth rates, leading to a lower number of workers per retiree today.
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