Final answer:
The statement that Social Security provides sufficient benefits for a comfortable retirement is False. Social Security benefits replace about 42% of a retiree's earnings, which generally necessitates additional income sources for a comfortable retirement. Concerns regarding the sustainability of Social Security continue due to demographic shifts and potential strain on its funding.
Step-by-step explanation:
The statement 'Social Security is a social program that provides sufficient benefits for a comfortable retirement' is False. Social Security is indeed a significant social insurance program in the United States, aiming to provide a safety net for the elderly, disabled, and survivors of deceased workers. However, it was not designed to be the sole source of income for retirees. Instead, Social Security benefits are based on an individual's earnings, replacing approximately 42% of previous wages for an average income earner, which is typically not enough to ensure a comfortable retirement. Despite being a crucial source of income for many retirees, it is often supplemented with personal savings, pensions, and investments.
First established by the Social Security Act of 1935 during the Great Depression, the program has greatly contributed to the decline in elderly poverty rates over the decades. However, the program is not without its challenges. There is debate and concern over its sustainability, given demographic changes such as the aging Baby Boomer population and a smaller workforce relative to the number of retirees. Potential reforms to address these financial challenges include increasing the retirement age or payroll taxes, similar to the changes made after the Greenspan Commission's recommendations in the 1980s.