Final answer:
The main purpose of the Social Security system is to provide partial replacement of earnings when a worker retires, indicated by answer choice b. Social Security also provides disability payouts and Supplemental Security Income and has been instrumental in reducing elderly poverty. Option b
Step-by-step explanation:
The original and main purpose of the Social Security system was to provide a partial replacement of earnings upon retirement. So the correct answer is: b. a worker decides it is time to retire.
Social Security acts as a social safety net, particularly for those in old age, supplying monthly retirement income from the age people stop working, originally set at the age of 65. This governmental effort was intended to address challenges in saving during the working years, initiated during the Great Depression with the Social Security Act of 1935.
The primary benefits that Social Security offers are retirement benefits, disability payouts, and Supplemental Security Income (SSI). Retirement benefits are based on wages earned while working and the system aims to prevent poverty among the elderly.
For workers who become incapable of work due to disabilities, the program also distributes disability benefits, while SSI provides additional income to individuals with considerable disabilities or those elderly who fall below an income threshold. Furthermore, the system offers benefits for 'survivors', including widows and dependent children.
Social Security is funded through payroll taxes and has been a critical component in reducing elderly poverty in the United States. It was originally designed to aid older adults who hadn't saved sufficiently during their working lives and had no income once they retired.
Over time, the program has become the main source of income for many retired Americans, underscoring its significance in social welfare and the economy. Option b