Over 65 years ago, the Federal government began issuing to working Americans funny little cards to go in their wallets and pocketbooks. The cards had nine numbers printed on the front. The first batch of cards were actually printed and distributed by the U.S. Postal Service. John D. Sweeney, Jr., age 23, of New Rochelle, New York was the first person to get one. The next day, Mr. Sweeney’s name was printed in thousands of newspapers around the country for being the first to get one. If you’re wondering what it was that made history in November of 1936, it was the first printing of Social Security Cards.

Roosevelt’s Message

Franklin D. Roosevelt, at the signing of the Social Security Act in 1935, made this statement:
"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."

It is clear that his intent was to give a measure of financial security to those who otherwise had been unable to do so for themselves before reaching either an age or physical condition that made it impossible to continue working. Over the ensuing 63 years, Social Security was transformed from a program of “financial insurance” for the distressed, into a retirement benefit for all. It’s sometimes referred to as the “third rail” in political discussions. (The third rail of a subway system is the one electrically charged - the one you’re “not supposed to touch”!)

The Most Used S.S. Number in History: 078-05-1120

On a humorous note, there was another individual who stands out in the storied history of Social Security. Her name was Hilda Schrader Whitcher.

A wallet manufacturer in 1938, eager to capitalize on the new card being issued, decided to market its product by showing how a Social Security card would fit neatly into the inside pocket. A sample card was inserted into each wallet, and sold by Woolworth’s and other stores across the country. Before the printing of the phony cards, E.H. Feree Company’s Vice President Douglas Patterson had a witty idea of printing the actual Social Security number of his secretary, Hilda Schrader Whitcher, on every sample card.

Even though the card was smaller than an actual card, and was printed in red, with the word “specimen” printed across the front, many purchases of the wallet began using Mrs. Whitcher’s number as their own. By 1943, 5,755 people were using Hilda’s number. Over the years, over 40,000 had at one time used this number and, as late as 1977, 12 individuals were still using the “number issued by Woolworth’s”. By the way, Mrs. Whitcher was eventually issued a new number.

Will Social Security Be There For You?

If you’re still working, you may be asking that question. The answer? Absolutely. The real question to ask yourself is what will the system be like in the future, and how will I qualify for benefits? For over six decades, our Social Security system has been a basic thread in the fabric of American life. The Social Security law has been one of the most changed and modified government systems in American history. It has always been changed to meet the needs of the American people. It will need to change again to meet future challenges.

Since its inception, Social Security has provided a minimum “foundation of protection” for retired workers, and for workers and their families who face a loss of income due to disability or the death of a family wage earner. Social Security allows people to live independently and with dignity. Approximately 150 million workers are protected by Social Security, and more than 44 million people receive retirement, survivors and disability benefits from Social Security. You and your family are probably protected by Social Security, and you paid the taxes that help make the system work.

Social Security payments are based on two underlying philosophies. First, the system is designed so that there is a clear link between how much a worker pays into the system and how much he or she will get in benefits. Basically, high wage earners get more, and low wage earners get less. At the same time, the benefit formula is weighted in favor of low wage earners, who have fewer resources to save or invest during their working years. Second, the Social Security program is a way of providing a base of economic security in today’s society. It relieves families of the financial burden of supporting other family members by providing a package of retirement, disability and survivors insurance.

Americans are talking about what kind of Social Security system they want for the future at town hall meetings and forums all across the country. You should take part in these discussions, too. It should be important to you ... it was to your parents and grandparents ... and will be to your children and grandchildren.

A footnote on John Sweeney: He died of a heart attack in 1974 at the age of 61 without ever receiving any benefits from the Social Security program. His widow, however, was able to receive benefits based on his work until her death in 1982.

Mr. Gary Crooms is President and founder of Senior Information Services of America®, a long term care financial planning firm that specializes in assisting seniors and their families with late life planning issues. If you have any questions, please contact Mr. Crooms at gary@seniorinformation.com