Final answer:
The social security system in the United States was intended as a supplement to other sources of retirement income, not as the main source. It provides key financial support for many elderly Americans but alone does not guarantee a comfortable standard of living. While concerns about its long-term sustainability exist, the program is crucial for millions who rely on it.
The correct option is a. was not designed to be the main source of income for older people.
Step-by-step explanation:
The social security system in the United States was not designed as the main source of income for older people but as a supplement to personal savings and pensions. Initially, it covered a small group of workers and has expanded over time. Funded by payroll taxes, Social Security provides a financial safety net for the elderly and others such as disabled workers and the families of deceased workers.
In regards to the options presented in the student's question:
a. was not designed to be the main source of income for older people - This is the correct option. Social Security was intended to be a part of a comprehensive retirement plan, not the sole source of income.
b. provides recipients with payments that are generally above the poverty level - While Social Security does help lift many out of poverty, it is not accurate to say that it generally provides payments above the poverty level for all recipients.
c. is unlikely to continue to exist - This option is speculative. Despite concerns about sustainability, no definitive evidence exists that Social Security will cease to exist altogether, although reforms may be necessary to ensure its continuance.
d. sufficiently provides older people with a comfortable standard of living - Social Security alone does not ensure a comfortable standard of living for most seniors, as it's intended to supplement other retirement incomes.
Despite the controversial nature of its funding and sustainability, millions depend on Social Security benefits as a vital part of their retirement income. With income replacement rates around 42% for average earners (and higher for lower-income workers), Social Security is a critical program for many elderly Americans, though it was never meant to be the only support for retirees. Concerns about the long-term viability of the program persist, driven by demographic changes and the increasing ratio of beneficiaries to active workers. Solutions may include increases to retirement age or payroll taxes to ensure the program can continue to serve future generations.