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How are Social Security retirement benefits paid for

User Kyle Macey
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2 Answers

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Final answer:

Social Security retirement benefits are paid for through payroll taxes. Workers contribute a percentage of their income, and these funds are used to provide benefits to retirees.

Step-by-step explanation:

Social Security retirement benefits are primarily paid for through payroll taxes. All workers pay a percentage of their income into Social Security, and these contributions are used to fund the benefits given to retirees. The payments made by workers today are used to provide benefits to current retirees, with the expectation that future workers' contributions will fund their retirement benefits when the time comes.

User Nawaf Alsulami
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2 votes

Answer:

You pay Social Security taxes based on your earnings, up to a certain amount. In 2019, that amount is $132,900.

Step-by-step explanation:

User CJ Ramki
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