Understanding Social Security and Medicare

What is the new estimated year for the depletion of full funding for Social Security retirement benefits?

• 2032

• 2035

• 2034

• 2033

How many workers currently pay into Social Security for each retiree?

• 3 workers

• 5 workers

• 10 workers

• 40 workers

What demographic change has contributed to the strain on Social Security?

• Decreasing life expectancy

• Increasing birth rates

• Retirement of baby boomers

• Reduction in immigration

What recent legislative change affected the Social Security trust fund's end date?

• A law eliminating Social Security taxes

• A law increasing the retirement age

• A law increasing benefits for retired public workers

• A law reducing benefits for all retirees

What percentage of promised benefits would Social Security be able to pay if the trust fund runs out?

• 50%

• 77%

• 90%

• 100%

What is one reason some people choose to claim Social Security benefits as soon as they are eligible?

• They believe the system will last forever

• They want to receive larger checks

• They want to avoid paying taxes

• They are concerned about potential rule changes

What is a potential downside of claiming Social Security benefits early?

• Having to pay more taxes

• Locking into a smaller check for life

• Losing eligibility for Medicare

• Receiving a larger check for life

What is one of the proposed solutions to address Social Security's funding issues?

• Reducing the number of beneficiaries

• Increasing the payroll tax rate

• Lowering the retirement age

• Eliminating Social Security

What is a potential benefit of working an extra year or two before retirement?

• It decreases your lifetime income

• It has no impact on your income

• It reduces your Social Security benefits

• It can significantly boost your lifetime income

What is one way to prepare for potential reductions in Social Security benefits?

• Rely solely on Social Security

• Ignore retirement planning

• Spend all savings before retirement

• Save more in a 401k or IRA