Asked by Heather Hernandez on May 13, 2024
Verified
What are the similarities and differences between Social Security retirement and pensions?
Social Security
A government program designed to provide financial assistance to the elderly, disabled, and survivors within a society.
Pensions
Retirement plans that require an employer to make contributions into a pool of funds set aside for a worker's future benefit, which is then paid out to the worker upon retirement.
Retirement
The phase of life where an individual ceases full-time employment, typically associated with reaching a certain age or financial status.
- Recognize the essential elements and differences between public safety initiatives and pension schemes.
Verified Answer
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Anisha AndrewsMay 15, 2024
Final Answer :
Both address income for retired people. Both are tied to an individual's employment. Social Security is available to (almost) everyone who works because it is a public protection program. Pensions are available only to persons whose employers' offer them, as pensions are private protection programs. Employers are legally required to process social security contributions/deductions whereas there is no legal requirement to provide a pension.
Learning Objectives
- Recognize the essential elements and differences between public safety initiatives and pension schemes.