Social Security, officially known as Old Age and Survivors Insurance (OASI),
A) collects funds from current workers and invests them in order to provide these workers with a stream of income during the retirement phase of life.
B) is based on the same principles as private insurance programs.
C) is an intergenerational income transfer program.
D) is a voluntary savings program run by the government.

Question

Quizplus · Accepted Answer

Social Security is an intergenerational income transfer program where current workers' contributions are used to pay benefits to current retirees, rather than being invested for the contributors' own future retirement.

Social Security, Officially Known as Old Age and Survivors Insurance