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Social Security Benefits and Coverage Quiz

#1

What is the primary goal of Social Security benefits?

To provide income security during retirement, disability, or death
Explanation

Income security for retirement, disability, or death

#2

Who is eligible for Social Security benefits?

Individuals who have paid into the system through payroll taxes
Explanation

Those who contributed via payroll taxes

#3

Which of the following is NOT a type of Social Security benefit?

Unemployment benefits
Explanation

Excludes unemployment benefits

#4

What does SSDI stand for in the context of Social Security benefits?

Social Security Disability Insurance
Explanation

Social Security Disability Insurance

#5

Which of the following is NOT a factor considered when calculating Social Security retirement benefits?

Number of children
Explanation

Excludes consideration of number of children

#6

What is the Supplemental Security Income (SSI) program?

A program providing cash assistance to elderly, blind, and disabled individuals with limited income and resources
Explanation

Cash assistance for elderly, blind, and disabled

#7

How are Social Security benefits affected if an individual chooses to retire before reaching full retirement age?

Benefits are decreased
Explanation

Benefits decrease if retiring before full age

#8

What does the term 'FICA' stand for in the context of Social Security benefits?

Federal Insurance Contributions Act
Explanation

Federal Insurance Contributions Act

#9

At what age can individuals start receiving Social Security retirement benefits?

62
Explanation

Start at 62 years old

#10

What is the full retirement age for Social Security benefits for individuals born in 1960 or later?

67
Explanation

Full retirement age: 67

#11

How are Social Security benefits adjusted for inflation?

Benefits are increased with inflation
Explanation

Benefits increase with inflation

#12

What is the purpose of Social Security survivors benefits?

To provide financial assistance to the spouse and children of a deceased worker
Explanation

Assist spouse and children of deceased worker

#13

How is the taxable portion of Social Security benefits determined?

It depends on the beneficiary's total income
Explanation

Taxable portion varies with total income

#14

What is the purpose of the Social Security Administration's 'earnings test'?

To reduce benefits for individuals who continue working while receiving Social Security benefits before full retirement age
Explanation

Reduces benefits for early retirees who keep working

#15

What is the maximum number of credits one can earn per year toward Social Security benefits?

12
Explanation

Maximum: 12 credits per year

#16

What is the maximum percentage of one's pre-retirement earnings that Social Security benefits replace?

75%
Explanation

Max: 75% of pre-retirement earnings

#17

Which of the following statements about Social Security spousal benefits is true?

Spousal benefits are available even if the spouse is divorced, as long as the marriage lasted at least 5 years
Explanation

Available even after divorce if marriage lasted 5+ years

#18

What is the Windfall Elimination Provision (WEP) in Social Security?

A provision that reduces the Social Security benefits of individuals who also receive a pension from work not covered by Social Security
Explanation

Reduces benefits for those with non-Social Security pensions

#19

What is the difference between Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI)?

SSDI is funded by payroll taxes, while SSI is funded by general tax revenues
Explanation

SSDI from payroll taxes, SSI from general taxes

#20

What is the significance of the 'deeming provision' in Social Security rules?

It reduces benefits for individuals who receive pensions from work not covered by Social Security
Explanation

Reduces benefits for non-Social Security pensions

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