As a result of the pay-as-you-go nature of Social Security financing,the continuation of benefit payments is dependent upon _____.
A)new individuals entering the system
B)the current tax level
C)current economic growth rates
D)the Baby Boomer's decision on when to retire

Question

Quizplus · Accepted Answer

Social Security is funded by current workers' payroll taxes, so new individuals entering the system are essential to maintain the flow of funds needed for benefit payments.

As a Result of the Pay-As-You-Go Nature of Social Security