What is the primary function of Social Security tax?

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Study for the EverFi Financial Literacy for High School Test. Prepare with questions and answers, detailed explanations, and comprehensive resources to ensure success!

The primary function of Social Security tax is to secure retirement benefits for individuals once they reach retirement age. This tax is collected from workers' earnings and is used to fund the Social Security program, which provides financial assistance to retirees, disabled workers, and survivors of deceased workers.

The revenue generated from Social Security tax accumulates in the Social Security Trust Fund, which is then utilized to provide monthly benefits to eligible recipients. By contributing to this system, workers ensure they have financial support in their later years, which is essential for maintaining a stable quality of life during retirement.

The other options, while important areas of public funding, do not accurately reflect the purpose of Social Security tax; it is specifically designed to support the retirement and disability benefits for the workforce.

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