Which of the following best describes how a pay-as-you-go system is financed?


The U.S. government borrows the proceeds to pay recipients.


All workers in effect pay for their own retirement by a mandatory process of savings.


The system must be reappropriated by Congress each year.


Today's workers support today's program beneficiaries.


Any surpluses from the Social Security system go back into the government's general revenue.



Answer :

Answer:

Today's workers support today's program beneficiaries.

Explanation:

In a pay-as-you-go system, also known as a "pay-as-you-earn" system, current workers' payroll taxes fund the benefits paid to current retirees. This means that the contributions made by today's workforce support the retirement benefits of current retirees, rather than being set aside for their own future retirement.