Chapter1YourSocialSecurityCard
IntheUnitedStates,theninedigitsthatmakeupyourSocialSecuritynumber(SSN)maybe
themostimportantnumbersinyourlife.YouarerequiredtoapplyforyourSSNwhenyoustart
yourfirstjob,anditstayswithyoufromthenon!WeuseourSSNsdaily,althoughmanytimes
wedon'tevenknowit.
Importantasitis,wemaynotknowmuchabouttheoriginofourspecificnumberandhowSSNs
generallycametobe.Wecertainlydoknowwedon'twantotherpeopleusingourSSNastheir
own,especiallynot40,000otherpeople,ashappenedtoonewomanwe'lldiscussalittlelater!
Inthischapter,we'lltellyouaboutabouthowtheSocialSecurityprogrambeganandanswer
somecommonquestionsregardingSSNs.We'llalsotellyouwhattodoifyourcardislostor
stolenandhowyoucandealwithandpreventSocialSecurityfraud.Butfirst,we'lltellyouwhat
yournumbersarefor,whattheymeanandhowyougetthespecificnumberyou'llhaveforthe
restofyourlife.
WhatisSocialSecurity?
Generally,thetermsocialsecuritydescribesaprogramthatusespublicfundstoprovidea
degreeofeconomicsecurityforthepublic.Thespecificsocialsecuritydiscussedhereisthe
UnitedStatesgovernmentprogramestablishedin1935thatprovidesoldage,disability,and
survivorsinsurance,aswellassupplementalsecurityincome,anincomeforelderlyordisabled
people.
IntheUnitedStates,employersandemployeesarerequiredtopaySocialSecuritytaxes.The
moneyraisedfromthesetaxesprimarilygoestoprovidingbenefitsforthosewhohavereached
retirementageorareotherwisecurrentlyeligible.Inthisway,today'sworkersprovidefundsfor
thepeopledrawingbenefitstoday,andwhentoday'sworkersretire,theworkersofthattimewill
(atleasttheoretically)providethefunds.YoureceiveSocialSecuritybenefitsbasedonthe
amountofSocialSecuritytaxesyouhavepaid,which,uptoacertainmaximumamount,isbased
onyourincome.PeoplewhohavehadgreaterincomestendtogetgreaterSocialSecurity
benefits.ButSocialSecurityalsopaysadisproportionateamounttopeopleearninglowincomes.
Theyneedthemoneymore,andadollartheypayinSocialSecuritytaxesprovidesthemhigher
benefitsthanadollarpaidbyahighroller.Inthisway,SocialSecurityinprincipleprovidesfor
thoseinneed.
SocialSecurityreformisinthenewsprettyconsistentlyIfyou'recountingonSocialSecurityfor
aportionofyourincomewhenyouretire.ThedebateoverSocialSecurityreformhasgenerated
manycompetingclaimsandconfusingprojections.Butthemostimportantissueisthis:Willthe
currentSocialSecuritysystemprovideourchildrenandourgrandchildrenwithasecureand
