What You Need To Know About Your Social Security

What happens if someone does not contribute to FICA during their working years?

• They will still receive full Social Security benefits

• They may not qualify for Social Security benefits in retirement

• They will be fined by the IRS

• They will have to pay double when they retire

What is the primary purpose of Social Security benefits?

• To help individuals buy a home

• To cover education costs

• To replace private pensions

• To provide financial support in retirement or disability

Who funds Social Security benefits?

• Only the government

• Employers only

• Employees and employers through payroll taxes

• Retirees themselves

What does FICA stand for?

• Federal Income and Consumer Act

• Federal Insurance Contributions Act

• Financial Investment and Credit Act

• Federal Interest and Cash Assistance

What percentage of an employee's paycheck goes to Social Security under FICA?

• 4.5%

• 6.2%

• 10%

• 12%

At what age can most people start receiving Social Security retirement benefits?

• 50

• 55

• 62

• 70

How does Social Security help individuals with disabilities?

• It pays for medical insurance only

• It provides financial benefits if they cannot work

• It offers discounts on goods and services

• It does not support disabled individuals

How does a 401(k) plan differ from Social Security?

• Social Security is voluntary, while 401(k) plans are required

• 401(k) plans are private retirement accounts managed by employers.

• Social Security earns higher interest than 401(k) plans

• 401(k) plans provide money only after age 70

What is the main advantage of a private pension fund over Social Security?

• Private pensions are mandatory for all workers

• Social Security offers a higher payout than private pensions

• Private pensions usually provide higher income in retirement.

• Private pensions require no contributions from employees

Why is it important to start saving for retirement early?

• To accumulate more savings over time

• To qualify for Social Security sooner

• To avoid paying taxes

• To get a higher-paying job