The Social Security Act, signed by President Roosevelt on August 14th, 1935, was enacted to: “frame a law which will give some measure of protection to the average citizen and to his family against the loss of a job and against poverty-ridden old age”. In January 1937, taxes were collected for the first time and the first one-time, lump-sum payments were made that same month. Ernest Ackerman was the first person to receive Social Security benefits, he got a payment of seventeen cents that January. Ongoing monthly benefits started in January of 1940.