What is Social Security?

• A. A state tax form
• B. Federal program of disability and retirement benefits that covers most working people
• C. A private pension plan
• D. A health insurance plan for the elderly

Answer: (B)

Social Security is a federal program that provides retirement, disability, and survivor benefits to most working people. It’s funded through payroll taxes paid by workers and their employers, and the benefits you receive are based on your earnings history and the credits you earn over time. This program acts as a social insurance safety net, helping replace part of your income after retirement and offering support if you become disabled or if a worker dies and leaves dependents. It is not a state tax form, not a private pension plan, and not health insurance for the elderly—the health coverage for older Americans is Medicare.