Is Social Security a Pension?

The Social Security program is not a pension and was never intended to be a pension. It is a social insurance program administered by the U.S. federal government.

Is Social Security considered pension or retirement?

Social Security is part of the retirement plan for almost every American worker. It provides replacement income for qualified retirees and their families.

Why is Social Security not a pension program?

Social Security is a government-guaranteed basic income for older Americans, funded through a special tax paid by employees and employers. For most retirees without a pension, Social Security will not be enough; other types of retirement savings, like a 401(k) or an IRA, are encouraged.