Social Security refers to a social insurance program in many countries, including the United States, that provides financial benefits and support to eligible individuals and their dependents. It aims to provide income security and protection against economic risks, particularly in retirement, disability, and for survivors of deceased workers.
Social Security is a government program designed to provide financial assistance and support to individuals and families in times of retirement, disability, or loss of a family member. It operates as a social insurance system funded by contributions from workers and employers, with the goal of ensuring economic stability and reducing poverty among eligible individuals.
The primary components of the Social Security program in the United States include retirement benefits, disability benefits, and survivor benefits:
Retirement Benefits: Social Security retirement benefits are available to individuals who have reached a certain age (typically 62 or older) and have earned sufficient credits through their work history. The amount of retirement benefits is based on an individual’s average earnings over their working years.
Disability Benefits: Social Security disability benefits provide financial support to individuals who have a medical condition that prevents them from working. To qualify for disability benefits, individuals must meet specific medical criteria and have earned enough work credits. These benefits are intended to replace a portion of lost income due to disability.
Survivor Benefits: Social Security survivor benefits are available to the surviving spouses, children, or dependent parents of deceased workers who had earned sufficient work credits. These benefits provide financial support to help replace the lost income of the deceased worker.
Social Security benefits are adjusted annually based on changes in the cost of living, known as cost-of-living adjustments (COLAs), to account for inflation and maintain the purchasing power of benefits.