Which of the following most accurately describes Social Security?
A) It is a pay-as-you-go system.
B) It is a savings plan.
C) It is a loan given by younger generations to older generations that must be paid back.
D) It can go up or down dramatically like the stock market.

Question

Quizplus · Accepted Answer

Social Security is a pay-as-you-go system, meaning that current workers' payroll taxes fund benefits for current retirees. It is not a savings plan or a loan, and its payouts are adjusted based on changes in life expectancy and wage levels, but it does not fluctuate in the same way as the stock market.

Which of the Following Most Accurately Describes Social Security