The social welfare system in the United States is well-established. It is undeniable that, in this regard, our country cannot currently compare. This is also an important reason why many Chinese people choose to immigrate to the United States. It is essential to understand the welfare policies in the United States, as they are closely related to the interests of immigrants. Only by understanding and mastering the welfare policies can one better utilize them. If immigrants living in the United States cannot fully enjoy the benefits brought by the welfare system, wouldn't that be a waste? So, what distinctive welfare policies does the United States have?
Feature One: Social Security Benefits Have Life Insurance Functions
The establishment of the Social Security program in the United States is intended to ensure that wage earners have a basic income after retirement, while also considering that individuals who are unable to work due to work-related injuries can still receive income. Finally, it also takes into account that if the head of the family passes away, the widow and orphans should not lose their source of income. As of June 2012, approximately 56 million people in the United States were receiving Social Security benefits, meaning that one in every six Americans receives Social Security. The Social Security program also includes workers who are injured on the job; as long as they are unable to work due to a work-related injury, they can receive Social Security benefits from the government each month. In 2011, 96% of wage earners aged 21 to 64 in the United States were protected by disability insurance, meaning that even if they are unable to continue working due to an injury, they will still have basic income protection. Among wage earners aged 20 to 49, 96% have obtained life insurance-like protection through payroll contributions. If a working individual passes away at the age of 30, their surviving spouse and children can rely on Social Security benefits to get through difficult times.
Feature Two: Social Security Benefits Typically Increase with Inflation
Prices tend to rise, so the amount of Social Security benefits issued by the federal government is not fixed but is adjusted according to inflation. The government's intention is to prevent retirees' income from decreasing in real terms if it does not increase with rising prices. This is particularly important for low-income groups who rely primarily on Social Security benefits; if their income remains unchanged after retirement, they can easily fall into poverty in today's increasingly severe inflation. The amount of Social Security benefits that Americans receive after retirement is primarily based on their income during their working years, and they receive benefits according to their income ratio. High-income individuals who earn well during their working years may receive larger Social Security benefits upon retirement. To ensure fairness, the government sets a maximum limit on the amount of Social Security benefits issued each month and strives to increase the benefits for low-income individuals.
Feature Three: Social Security Benefits Cover Over 90% of Wage Earners
Where does the funding for the Social Security program in the United States come from? It primarily comes from the payroll taxes paid by wage earners during their working years. Therefore, anyone who has worked full-time for more than 10 years can receive Social Security benefits upon retirement. In the United States, virtually all full-time wage earners pay payroll taxes, and they pay taxes for every day they work, so almost everyone can receive Social Security benefits after retirement. Social Security is not a form of welfare; it is a guarantee of income for all wage earners after retirement. Even high-income individuals are not excluded from receiving Social Security benefits, as it is a universal social welfare program. Even if retirees have other sources of income, such as 401K retirement savings from private companies, income from financial real estate, pensions, or work income, the government still issues Social Security benefits. According to statistics, 90% of wage earners aged 65 and older can receive Social Security pensions after retirement.
Feature Four: The Amount of Social Security Benefits Received by Retirees is Not High
According to data from the Social Security Administration, the average Social Security benefit for retirees in 2012 was $1,262 per month. There is no minimum limit for the lowest Social Security benefit for Americans after retirement; it mainly depends on an individual's income during their working years. However, there is a maximum limit on Social Security benefits, which, according to 2013 standards, was $2,533 per month for retirees receiving benefits from the federal government. In 2013, Social Security benefits for Americans were increased, with retirees averaging $1,261 per month, and couples averaging $2,048 per month. Widowed women with two children averaged $2,592 per month. Widowed elderly individuals averaged $1,214 per month. Individuals with disabilities could receive an average of $1,132 per month in Social Security benefits.