The replacement rate in the context of Social Security refers to the amount of preretirement pay that is replaced by the Social Security retirement benefit. Compared with high-wage earners, for low-wage earners, the replacement rate is:
A) lower.
B) higher.
C) none.
D) None of the answers is correct.

Question

Quizplus · Accepted Answer

The replacement rate for low-wage earners is higher than it is for high-wage earners. This is because Social Security benefits replace a higher percentage of pre-retirement pay for lower-income earners.

The Replacement Rate in the Context of Social Security Refers