Strategy Beginner: Social Security, Medicare and Retirement

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1.
Social Security benefits are based on the best 10 years of your lifetime earnings.
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False. Social Security retirement benefits are based upon your lifetime earnings recorded with the Social Security Administration.
2.
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.
3.
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.
4.
One possible solution to the Social Security problem is to decrease the retirement age.
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False. One possible solution is to increase the retirement age so that more Social Security tax money can be collected and less can be paid out.
5.
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.