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What is the Purpose of Social Security. The purpose of social security is to strengthen and support an individual who has faced an unwanted and tragic incident in his life. This may include loss of a dear one or losing a job or a sudden accident. Keep reading to know more about its purpose.
Social Security is designed to provide retirement support for American workers who pay into the system. It is funded through FICA taxes (FICA stands for the Federal Insurance Contributions Act). The Social Security Administration levies a 12.4% tax on earnings (6.2% is paid by you, and 6.2% is paid by your employer) to fund Social Security benefits. There's a good deal of confusion surrounding Social Security and how this vast program works, so let's go over the basics that every American should know.