What role does Social Security play in retirement planning?

Social Security plays a vital role in retirement planning as it provides a source of income designed to supplement personal savings and pensions. This means that while many retirees may have other forms of income, such as savings or employer-sponsored retirement plans, Social Security acts as a critical safety net that helps ensure that individuals have a steady income stream once they retire.

It's important to recognize that Social Security was not designed to be the sole source of retirement funds. Many retirees rely on a combination of Social Security benefits, personal savings, and pensions to achieve financial stability in retirement. This layered approach to income helps mitigate the risks associated with relying on a single source, granting retirees more flexibility and security.

The other choices misrepresent Social Security's purpose and functionality. Characterizing it solely as a primary income source underplays the necessity for additional savings and does not accurately reflect the funding structure of retirement for most individuals. Describing Social Security as optional neglects its foundational nature in the U.S. social safety net, while suggesting it only provides healthcare coverage overlooks its integral role as a source of income.