What does the term "Social Security" refer to?

The term "Social Security" refers primarily to a federal program that provides retirement and disability benefits to eligible individuals. Established in the United States in 1935, this program aims to provide financial support to workers and their families, ensuring they have some income during retirement or in the event of a disability that prevents them from working.

This program is funded through payroll taxes collected under the Federal Insurance Contributions Act (FICA). Workers accumulate credits based on their earnings, which determine their eligibility for benefits. For retirees, the program provides monthly payments that are based on their earnings history and the age at which they begin receiving benefits. For individuals with disabilities, Social Security Disability Insurance (SSDI) offers financial assistance after a qualifying period.

The other answers do not accurately capture the essence of Social Security, as it is distinct from initiatives that promote saving, private insurance programs, or financial service organizations. Social Security is a key part of the social safety net in the United States, aimed at ensuring a basic level of financial security for citizens as they age or face disability.