Significance
"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." -- President Roosevelt upon signing Social Security Act
Pensions
The current generation of workers had to pay into a fund and those who retired would take a monthly stipend. When the person get to the age of 65, they begin to get payments that are based on how much the contributed over the years. 1% of incomes were deducted automatically from the checks of employees. There was also contribution from employers to their employees. Aside from the individuals that had no professions, this was mandatory. This really showed that the government and your profession cared about you, should you grow old or be unable to work (Social Security Administration).
Unemployment Insurance
Those who become involuntarily unemployed can use this since it provides partial income replacement for them. Eligibility for the benefits includes: registering at a public employment office, being available for work, being able to work, and having a prescribed amount of employment and earnings during a specified period. The ability to not work and still earn money was something that seemed like a dream to many Americans. During the Depression, a policy like this may have been a life-saver for millions of people. The government finally admitted to the fact that some for some people, it was impossible to get a job at that point in their life so they needed help to be able to continue living. Even though it was a bit late, it continues to aid people all around the country to this day (Social Security Administration).
Aid to Disabled and Children
The Social Security Act was amended on August 1, 1956 so that is provided benefits to any disabled workers 50-64 years of age and disabled children. Payment of benefits to the disabled workers that were any age and to their dependents was permitted in 1960, when President Eisenhower signed a law that amended the disability rules. Those who were getting disability benefits would receive an average of $80 per month. This guaranteed a much larger possibility that elders and small children who were in weaker states would be taken care of by the federal government. It showed that we cared about our citizens (Social Security Administration).