Old-Age, Survivors, and Disability Insurance (OASDI)

Old-Age, Survivors, and Disability Insurance (OASDI), is the official name for the federal Social Security program in the United States. This program provides monthly income benefits to retired workers, survivors of deceased workers, and individuals with qualifying disabilities, as well as their spouses and dependents. OASDI is funded by mandatory payroll taxes under the Federal Insurance Contributions Act (FICA), with employees and employers each paying 6.2% of wages (up to an annual wage limit), and self-employed individuals paying the full 12.4% themselves. The goal of the program is to provide a financial safety net and replace lost income due to retirement, disability, or the death of a family wage earner.