To put it simply, social security is the foundation which guarantees economic security for millions of people. This issue is quite often explained on the examples of United States of America where social security has been successfully implemented. Retirees, families of the retired, disabled people and disabled workers can be completely sure that everything will be taken care of.
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Speaking about the program itself, it can also be called a pay-as-you-go program. So, today’s workers need to pay a specific amount of money which is referred to as social security taxes. There are also pre-funded retirement programs and they are slightly different from social security programs. When you have a pre-funded program, it presupposes that the money is accumulated in order to be paid to you when you retire. Well, the general idea of such programs is that the person will have enough money to live on once they retire. Besides, a lot of people retirees want to finally be able to do all those things they have never had time for. For instance, a lot of people start traveling.
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