Which of the following statements correctly describes the purpose of Social Security?

Which of the following statements correctly describes the purpose of Social Security?

• A. It provides basic protection against financial problems accompanying death, disability, and retirement
• B. It augments a sound personal insurance plan
• C. It provides retirement and survivor benefits to a worker and the worker's family
• D. It provides a source of income for a meaningful standard of living during retirement

Answer: (D)

The purpose of Social Security is multifaceted, primarily aimed at providing a safety net for individuals during periods of financial uncertainty due to events such as death, disability, or retirement. The statement that social security provides a source of income for a meaningful standard of living during retirement captures this essential function. Social Security is designed to replace a portion of pre-retirement earnings, ensuring that retirees have a base income to support their basic living expenses and maintain a certain quality of life after they stop working. While other options mention aspects of the Social Security program, such as survivor benefits or functioning as supplementary support to personal insurance plans, they do not encapsulate the central aim of ensuring financial security specifically for the retired population. The focus on a "meaningful standard of living" emphasizes the program's intent to provide more than just minimal support; it seeks to help individuals achieve a comfortable and dignified existence during their retirement years.

The purpose of Social Security is multifaceted, primarily aimed at providing a safety net for individuals during periods of financial uncertainty due to events such as death, disability, or retirement. The statement that social security provides a source of income for a meaningful standard of living during retirement captures this essential function. Social Security is designed to replace a portion of pre-retirement earnings, ensuring that retirees have a base income to support their basic living expenses and maintain a certain quality of life after they stop working.

While other options mention aspects of the Social Security program, such as survivor benefits or functioning as supplementary support to personal insurance plans, they do not encapsulate the central aim of ensuring financial security specifically for the retired population. The focus on a "meaningful standard of living" emphasizes the program's intent to provide more than just minimal support; it seeks to help individuals achieve a comfortable and dignified existence during their retirement years.