Social Security System Flashcards, test questions and answers

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What is Social Security System?

Social Security is an important part of the retirement system in the United States. It provides a source of income for retired citizens, as well as survivors and disabled persons. The Social Security System is funded primarily through payroll taxes collected from employers and employees. This money is placed into a trust fund, which is then used to pay benefits to eligible individuals.The Social Security System has existed since 1935 and has grown in size and complexity over the years. It provides a variety of benefits, including retirement benefits, disability benefits, survivors’ benefits, Medicare coverage for those aged 65 or older, and Supplemental Security Income (SSI) for individuals who are disabled or low-income households with few resources. The amount of the benefit depends on how much an individual has paid into the system during their working years; this amount is known as their contribution or earnings record.While some disagree about whether Social Security should be reformed or not, it remains one of the most important sources of income for individuals who have worked throughout their lives but have not saved enough money to live comfortably after they reach retirement age. Furthermore, it can provide valuable financial support during times when people experience periods of unemployment or disability due to illness or injury. As such, Social Security has played an integral role in providing a secure financial foundation for millions across America over the decades since its inceptionand will continue to do so into the future.