Strategy Beginner: Social Security, Medicare and Retirement

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1.
Social Security benefits are based on financial need.
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False. Anyone who pays Social Security taxes can collect Social Security benefits if they have enough credits.
2.
You may receive full Social Security retirement benefits if you are eligible for early retirement.
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False. You are eligible for full retirement benefits only at normal retirement age.
3.
Social Security is designed to cover most of a person's retirement income needs.
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False. Social Security is designed to provide part of a person's retirement income needs, along with retirement savings and a company pension.
4.
Social Security trust funds invest in _______.
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Government bonds. Trust money not used to pay benefits is invested in special US government bonds.
5.
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 _______.
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Asset reserves. At that stage, the reserves are being drawn down and may disappear if a solution is not found.