What is Social Security and how does it impact retirement planning?

Social Security is a government program designed to provide financial assistance to individuals during retirement or in the case of disability. Specifically, it administers benefits to retirees, disabled individuals, and survivors of deceased workers, helping to ensure a basic level of income and support for those who may not have sufficient means to support themselves after leaving the workforce.

In the context of retirement planning, Social Security plays a crucial role as one of the primary sources of income for many retirees. Understanding the benefits offered by Social Security, including the amount one can receive based on their work history and contributions, is vital for effective retirement planning. It allows individuals to estimate their post-retirement income, helping them make informed decisions regarding savings, investment strategies, and lifestyle adjustments required to maintain their desired standard of living in retirement.

The other options do not accurately describe the purpose or function of Social Security, as they focus on unrelated areas such as housing assistance and education funding. Thus, the accurate characterization of Social Security as a program providing financial assistance during retirement or disability directly addresses its impact on retirement planning.