what is ssn

A Social Security number (SSN) is a nine-digit number issued to U.S. citizens, permanent residents, and temporary residents under section 205 of the Social Security Act, codified as 42 U.S.C. § 405. It is a numerical identifier assigned to U.S. citizens and other residents to track income and determine benefits. The SSN was created in 1936 as part of The New Deal to provide for retirement and disability benefits. The SSN is composed of three parts: the area number, the group number, and the serial number. The area number is assigned by the geographical region, and the group number and serial number are assigned sequentially. The SSN is used to track an individuals yearly earnings and the number of years theyve worked, which are required to compute potential financial benefits, whether they relate to retirement income, disability income, or health insurance. Although some people do not have an SSN assigned to them, it is becoming increasingly difficult to engage in legitimate financial activities such as applying for a loan or a bank account without one.