Life · Chapter 12 · Characteristics & Funding
Social Security (OASDI)
Definition
Old-Age, Survivors, and Disability Insurance — created by the Social Security Act of 1935. Provides retirement income, disability income, a lump-sum death benefit, and survivor income to eligible workers and dependents. Benefits get an automatic annual cost-of-living adjustment (COLA) tied to the CPI.
In plain English
A government safety net funded by payroll taxes — it SUPPLEMENTS personal insurance and savings, it doesn't replace them.
Exam tip
Social Security supplements but does NOT replace personal financial planning — a favorite true/false concept.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms