August 7, 2025

As Social Security turns 90, lessons from the past can guide its future

As Social Security gets ready to celebrate its 90th anniversary, I am wondering how many past events will help determine the future of this successful and important social insurance program. When President Franklin D. Roosevelt signed Social Security into law in 1935, the secretary of the Treasury, the secretary of Labor, and the Social Security Board began to make and publish the rules and regulations necessary for the efficient administration of the functions each of them were charged.

A quote attributed to Mark Twain tells us that, “History doesn’t repeat itself, but it often rhymes.” Another way of saying this is that, because of past events, we can learn what can be done differently in the future. For example, I live in Florida, and we have learned many lessons from major hurricanes of the past.

Library of Congress

In 1928, the Okeechobee Hurricane was one of the deadliest in U.S. history, resulting in close to 2,500 fatalities. We now have early warning systems that were not reliable back then and left many residents unprepared.

Hurricane Andrew in 1992 taught us that our homes needed to be built to withstand hurricane-force winds. Today, they are constructed with reinforced roofs, impact-resistant windows, and other upgraded materials, which reduce damage from strong winds.

Hurricane Charley in 2004 taught us that smaller storms can cause serious damage and can quickly strengthen and change paths. When Floridians prepare for hurricane season each year, most residents gather supplies to secure their homes and survive a power outage or water shortage.

These lessons were all learned from the tragedies of past events.

Over the past 90 years, there have been many changes and improvements to our Social Security system. Taxes were first collected in January 1937, and the first one-time, lump-sum payments were made that same month. Regular ongoing monthly benefits began in January 1940. Ida Mae Fuller received the first recurring payment. Her claim was the first one on the first Certification List, and check number 00-000-001 was issued to her in the amount of $22.54. She lived to be 100 years old, passing away in 1975.

Today, many Americans are rightfully worried about the future of Social Security. To gain some perspective from the past, let’s see how much you know about Social Security. Here are 10 multiple-choice questions* to test your knowledge of its history:

1. In 1939, just four years after Social Security was signed into law, it was no longer an independent federal agency. Social Security became an agency under what was then called the Federal Security Agency, which was later replaced by the cabinet-level Department of Health, Education and Welfare (HEW). SSA became part of HEW. When did Social Security regain its status as an independent federal agency?
A. 1962 under President John F. Kennedy
B. 1995 under President Bill Clinton
C. 1947 under President Harry S. Truman
D. 1972 under President Richard Nixon

2. Which of the following was not a reason leaders determined it was important to make Social Security an independent agency?
A. To separate Social Security policymaking from economic and budgetary decisions affecting the rest of the federal government
B. To prevent fraud and abuse of the system
C. It would make it easier to deal with Social Security’s financing problems
D. To insulate it from everyday political, fiscal and operational policy decisions of the government

3. Which of the following was not included in the Social Security Amendments of 1983?
A. Approved increases to the OASDI tax rates for employees and employers
B. Enabled a divorced man to qualify for husband’s insurance benefits on the same basis as a divorced woman
C. Gradually raised the age at which full OASDI benefits are payable from 65 to 67, beginning with individuals who reach early retirement age (62) in 2000
D. Mandatory coverage under the OASDI program as of Jan. 1, 1984, for all federal employees first hired on or after that date
E. All the above were changes because of the 1983 Social Security Amendments

4. In what year did Social Security benefits first receive cost-of-living adjustments (COLAs) based on the Consumer Price Index, instead of requiring an act of Congress?
A. 1942
B. 1965
C. 1975
D. 1983

5. All current federal employees pay into Social Security except for:
A. Members of Congress
B. Federal employees with retirement coverage under the Civil Service Retirement System
C. The president and vice president
D. Federal judges

6. In the 1930s, most Americans who reached adulthood could expect to live to age 65—and those who did could collect benefits for many years. For example, 54% of men who reached age 21 could expect to live to 65, and men who attained age 65 could expect to receive benefits for almost 13 years. For women, 60.6% of those who reached age 21 could expect to live to 65. Life expectancy at age 65 for women was 14.7 years. How many Americans were age 65 or older in 1935?
A. 735,000
B. 7.8 million
C. 2.4 million
D. 22.8 million

7. According to the 2025 Trustees Report, there are eight policy options for changing the Social Security retirement age to help reduce pressure on the Trust Fund. According to the Census Bureau, how many Americans will be 65 or older in 2025?
A. 61.2 million
B. 34.8 million
C. 154 million
D. About the same as it was in 1935

8. According to the 2025 Social Security Trustees Report, the Old-Age and Survivors Insurance (OASI) Trust Fund can pay 100% of scheduled benefits until 2033. At that point, reserves will be depleted, and incoming revenue will cover 77% of benefits. What is the average life expectancy at age 65 in 2025?
A. 11.53 years for men, 13.37 years for women
B. 14.09 years for men, 16.27 years for women
C. 17.48 years for men, 20.12 years for women
D. 5.75 years for men, 6.76 years for women

9. In 1960, there were 5.1 workers per Social Security beneficiary. Today, that number is 2.8 and is projected to fall to 2 by 2040. The number of Americans age 100 and older is projected to more than quadruple over the next three decades. How many centenarians are there in 2024?
A. 401,000 (38% men, 62% women)
B. 11,000 (13% men, 87% women)
C. 750,000 (52% men, 48% women)
D. 101,000 (22% men, 78% women)

10. What was the employee share of the Social Security FICA tax rate in 1935, 1960, 1985 and today?
A. It has always been the same
B. 0.7%, 1.2%, 2.9%, 5.7%
C. 1%, 3%, 5.7%, 6.2%
D. 4%, 6.9%, 10.8%, 12.4%

References:

Older Adults Outnumber Children in 11 States and Nearly Half of U.S. Counties

Cost-Of-Living Adjustments

Historical Social Security Tax Rates, 1937 to 2022

Period Life Table, 2022, as used in the 2025 Trustees Report

Social Security Press Office Reports

CATO Institute; Social Security Benefits Are Growing Too Fast

Coping with the Demographic Challenge: Fewer Children and Living Longer

U.S. centenarian population is projected to quadruple over the next 30 years

Research Note #3: Details of Ida May Fuller’s Payroll Tax Contributions

Life Expectancy for Social Security

The Ratio of Workers to Social Security Beneficiaries Is at a Low and Projected to Decline Further