The Federal Ministry of Human Resources and Social Security (FMHRS) administers the Social Security Administration (SSA), which ensures retirement, disability, and survivor benefits. The SSA operates a pay-as-you-go system funded by payroll taxes, with benefits calculated based on lifetime earnings. As of 2023, approximately 64 million individuals receive monthly payments averaging $1,320. The retirement age for full benefits has gradually increased to 67 for those born in 1967 or later. Recent reforms emphasize long-term solvency, requiring adjustments to benefit formulas or eligibility criteria to address projected shortfalls by 2034.

The SSA’s funding relies on 12.4% of payroll taxes (FICA), split between employer and employee contributions. However, demographic shifts—such as aging baby boomers and rising life expectancy—have strained the system. From 2010 to 2023, the number of beneficiaries grew by 18%, while the worker-to-beneficiary ratio dropped from 3.3 to 2.7. The Old-Age, Survivors, and Disability Insurance (OASDI) trust fund is projected to deplete by 2034 unless Congress enacts reforms, according to the 2023 SSA report. Average monthly benefits for retired workers ($1,320) remain below the 2023 federal poverty level ($1,406 for a single individual), highlighting equity concerns. Delays in disability claim processing (approximately 120 days in 2022) further underscore systemic challenges. Policy debates focus on raising the retirement age, adjusting the benefit calculation (e.g., the " cola" adjustment), and expanding work incentives for beneficiaries. Without action, 20% of SSA’s projected 2034 outlays would face funding shortfalls, per the Congressional Budget Office (CBO). These data-driven challenges necessitate balanced reforms to ensure program integrity and fiscal sustainability.