Which government program primarily supports retired individuals?

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Prepare for the Personal Finance Module 3 DBA Test with interactive flashcards and multiple choice questions. Each question includes hints and detailed explanations to help you succeed. Start your journey to financial mastery today!

Social Security is the primary government program designed to support retired individuals. It provides financial assistance to people once they reach retirement age, ensuring they have a reliable income during their later years when they may no longer be able to work. The funding for Social Security comes from payroll taxes contributed by workers and their employers throughout their working lives.

In addition to retirees, Social Security also supports eligible individuals with disabilities and certain survivors of deceased workers, making it a crucial component of retirement planning for many Americans. This program helps mitigate poverty among the elderly and contributes to their overall financial stability.

While Medicaid, Medicare, and welfare programs serve important roles in the broader spectrum of social support, they are focused on different areas. Medicaid is designed to assist low-income individuals and families with healthcare costs, Medicare is primarily for the health insurance of older adults and some individuals with disabilities, and welfare programs generally provide assistance to individuals and families facing temporary financial hardships. Therefore, when it comes specifically to retirement support, Social Security is the correct answer.

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