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1.
Social Security is designed to cover most of a person's retirement income needs.
False. Social Security is designed to provide part of a person's retirement income needs, along with retirement savings and a company pension.
2.
Most of your Social Security taxes go into the Disability Insurance Trust Fund.
False. Most of your Social Security taxes (6.2 of the total 7.65 percent) go to the Old Age and Survivors Insurance Trust Fund.
3.
Social Security retirement benefits have faced financial challenges due to payroll taxes and interest on bonds being insufficient to cover the payouts on their own. To cope with this issue, Social Security has been redeeming _______.
Asset reserves. At that stage, the reserves are being drawn down and may disappear if a solution is not found.
4.
Your Social Security benefit will be less if you retire before full retirement age.
True. If you choose to retire before your full retirement age, your benefits will be reduced.
5.
Social Security benefits are based on financial need.
False. Anyone who pays Social Security taxes can collect Social Security benefits if they have enough credits.