What federal benefit provides retirement income for American workers?

The federal benefit that provides retirement income for American workers is Social Security. This program is funded through payroll taxes collected from workers and their employers, and it serves as a safety net for individuals during retirement. The benefits are typically based on the earnings history of the worker, ensuring that those who have contributed more to the system receive higher benefits upon retirement.

Social Security is crucial for many retirees as it provides a steady income that can help cover essential expenses, such as housing, healthcare, and daily living costs. Its structure is designed to assist individuals who may not have sufficient savings or employer-sponsored retirement plans. This makes it a vital part of the overall financial security for seniors in the United States.

Other options, while related to retirement, do not serve the same direct role as Social Security. Medicare is primarily health insurance for seniors, pension plans are employer-funded programs that may or may not be available to all workers, and 401(k) plans are retirement savings plans that depend on individual contributions and investment performance rather than a federal benefit.