Final answer:
The Social Security Act provides retired or unemployed older people with a pension from the government, financed by payroll taxes. It offers various benefits, including old-age pensions, disability benefits, and Supplemental Security Income, and plays a critical role in reducing elderly poverty rates.
Step-by-step explanation:
As a result of the Social Security Act, older people who were retired or unemployed were entitled to receive a pension (regular cash payments) from the government. The Social Security Act, enacted in 1935, aimed to provide a safety net for the elderly, as well as unemployed workers, and others in need. This program is primarily funded through payroll taxes paid by employees and employers. Benefits are based on a worker's earnings while employed, with the intention to complement, not fully replace, retirement savings.
The Act also encompassed other forms of aid, such as disability benefits to those unable to work due to serious health conditions, and Supplemental Security Income for the elderly and individuals with disabilities who have a low income. One critical aspect of the Social Security system is its role in substantially reducing the rate of elderly poverty, showcasing the importance of government involvement in securing the well-being of older citizens.