Final answer:
Social Security is a social insurance program that provides financial security to elderly Americans, unemployed workers, the disabled, and dependant children. It was established in 1935 and provides monthly retirement benefits to individuals 65 and older. While concerns about long-term sustainability exist, Social Security remains an important source of income for many retirees.
Step-by-step explanation:
Social Security is a social insurance program that provides financial security to elderly Americans, unemployed workers, the disabled, and dependant children. It was established in 1935 as a form of old-age insurance and has expanded over time. The program is primarily funded through a dedicated payroll tax and provides monthly retirement benefits to individuals 65 and older. Benefits are based on wages while working and are intended to supplement other forms of income, providing an average of 42% of previous wages. Lower-income earners receive a greater share of benefits compared to higher-income earners. Dependents and survivors of workers who die are also eligible for benefits.
However, there are concerns about the long-term sustainability of the Social Security program. With the increasing number of Americans reaching retirement age and fewer workers paying into the system, there is a projected shortfall in the future. To address this, reforms may include reducing benefits, adjusting the age of receiving benefits, or changing payroll taxes. Despite these challenges, Social Security remains an important source of income for many retirees in the United States.