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Social Security System (Part of Legally Required Benefits)

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Final answer:

Social Security is a social insurance program that provides old-age pensions and benefits for dependents and survivors of workers. It aims to reduce elderly poverty rates and is primarily funded through a payroll tax.

Step-by-step explanation:

Social Security is a social insurance program in the United States that provides old-age pensions, as well as benefits for dependents and survivors of workers.

It was created through the Social Security Act, a federal law passed in 1935.

The program is primarily funded through a dedicated payroll tax and aims to provide a social safety net for individuals as they age.

It has been credited with reducing elderly poverty rates in the United States. Social Security benefits are based on wages while working, and the program also offers disability payouts and supplemental income for those who qualify.

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