Social Security is a sizable program that impacts many families in the United St

Question

Social Security is a sizable program that impacts many families in the United States. Which of the following statements is not correct regarding Social security?

a. Social Security was never intended to provide a substantial wage replacement ratio for most
Americans.
b. Social Security skews benefits towards lower wage earners and away from higher wage
earners.
c. Social Security provides 90% or more of the income for more than 20% of retired married
couples.
d. All of the above statements are true.

Explanation / Answer

Option D is correct.

Social security is a very sizeable program which requires a huge amount of corpus. Though the amount of funding is huge, still it is not intended to fully replace the income or wages from a job. It does not encourage unemployment in any manner. It is just made to help the needy. Therefore, it skews the benefits towards lower wage earners and away from higher wage earners. Government also runs social security programs for retired people. The payment to these people is almost 90% of the income they were earning last.

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