Understanding Social Security

What is the primary purpose of Social Security?

• To provide housing assistance

• To offer free healthcare to all citizens

• To provide financial benefits to retirees, disabled individuals, and survivors of deceased workers

• To fund public education

How is Social Security funded?

• Through property taxes

• Through sales taxes

• Through payroll taxes

• Through income taxes

What determines the amount you receive from Social Security when you retire?

• Your total lifetime earnings

• The number of dependents you have

• Your 35 highest earning years

• Your age at retirement

Why is it important to understand Social Security early in your career?

• To receive free financial advice

• To qualify for government grants

• To plan for a diversified retirement

• To avoid paying taxes

What is a suggested strategy to ensure a stable retirement plan?

• Invest in a diversified retirement plan including 401(k)s and IRAs

• Save all earnings in a savings account

• Invest only in real estate

• Rely solely on Social Security