Old Age, Survivors, and Disability Insurance (OASDI) is the official name for the Social Security program in the United States, administered by the Social Security Administration (SSA). It provides financial benefits to retired individuals, surviving spouses and children of deceased workers, and people with qualifying disabilities.
OASDI is funded through payroll taxes collected under the Federal Insurance Contributions Act (FICA). Workers and employers each contribute a percentage of wages, which goes into the Social Security Trust Fund.
The program has three main components:
- Old Age Insurance: Monthly benefits paid to eligible retirees based on their earnings history.
- Survivors Insurance: Financial support for family members (such as spouses or children) of deceased workers.
- Disability Insurance: Benefits provided to individuals who cannot work due to a medical condition expected to last at least one year or result in death.
Eligibility for OASDI benefits depends on an individual’s work history and contributions. The amount received varies depending on lifetime earnings and the age at which benefits are claimed.
OASDI serves as a financial safety net, reducing poverty among seniors and vulnerable families. As one of the largest entitlement programs in the U.S., its long-term sustainability continues to be a topic of national debate.
