Future Business Leaders of America (FBLA) Agribusiness Practice Test

What does Social Security provide for individuals?

1. A retirement savings plan

2. A trust account for medical expenses

3. A managed trust account for post-working support

4. An investment option for savings

The correct answer is: A managed trust account for post-working support

Social Security is primarily designed to provide financial support to individuals during retirement, as well as in instances of disability or when survivors are left behind after an individual passes away. It does not act as a conventional savings or investment program. Instead, it functions as a form of social insurance where workers earn credits through their work history, enabling them to receive benefits based on their earnings and contributions over time. The correct understanding of Social Security being referred to here is that it serves as a managed trust account for post-working support; this means that once individuals reach retirement age or are unable to work due to health issues, they can draw from this fund to support their living expenses. The benefits distributed can help cover essential needs like housing, food, and other living costs, providing a safety net during post-working years or hardship situations. Other options reflect common misconceptions about the Social Security system. A retirement savings plan implies that individuals can directly manage and invest these funds to grow their retirement, which is not the case. Option B suggests a trust specifically for medical expenses, which is a separate program (like Medicare) rather than part of Social Security itself. Lastly, option D alludes to an investment component, while Social Security does not provide traditional investment options; it is solely focused