Which of the following statements is true regarding social security retirements benefits
A. Not all occupations are covered
B. It attempts to replace 42% of you average earnings.
C. All of the aove
To determine which statement is true regarding social security retirement benefits, we will need to evaluate each statement individually:
A. "Not all occupations are covered"
To verify this statement, we can refer to official information sources such as the Social Security Administration (SSA) website. There, we can find a list of occupations that are exempt from Social Security coverage, such as some state and local government employees, railroad workers covered by the Railroad Retirement Board, and certain federal employees hired before 1984. If the statement is supported by official information, then statement A is true.
B. "It attempts to replace 42% of your average earnings"
To assess the accuracy of this statement, we can look at the Social Security Administration's explanation of how benefits are calculated. Social Security retirement benefits are based on a person's average indexed monthly earnings (AIME). However, the percentage of replacement income may vary depending on the individual's earnings history. The SSA applies a benefit formula to the AIME to determine the Primary Insurance Amount (PIA). The PIA is then used to determine the monthly benefit amount. The actual percentage that Social Security strives to replace of an individual's average earnings is not fixed at 42%, but rather different each year. On average, it tends to replace a higher percentage of lower-income individuals' earnings than higher-income individuals. Therefore, statement B is not entirely accurate.
C. "All of the above"
If both statements A and B are true, then statement C is correct. However, since we determined that statement B is not entirely true, we cannot conclude that all of the statements are true.
Based on the analysis, the correct answer is A. Not all occupations are covered.