Explain how the Social Security program is partly an insurance plan an

Explain how the Social Security program is partly an insurance plan and partly a form of welfare.

What will be an ideal response?

ANSWER

Social Security is an insurance program to the extent that individuals pay contributions into the system and receive benefits in the future in proportion to their current contributions. Social Security is partly a redistributive program because payments to beneficiaries are not made in proportion to taxes paid. For example, married couples with one working spouse receive higher benefits relative to contributions than a single individual having made identical lifetime contributions.