What is the primary purpose of Old Age Survivors Disability Insurance?

The primary purpose of Old Age Survivors Disability Insurance (OASDI), commonly referred to as Social Security, is to provide a safety net for eligible workers and their dependents against various risks that can lead to financial hardship. This program aims to replace income lost due to old age when individuals retire, or due to a disability that prevents them from working. Additionally, it offers benefits to survivors of deceased workers, ensuring that families are supported even after the loss of the primary income earner.

By covering these three crucial areas—retirement income for the elderly, disability benefits for those unable to work, and survivor benefits for family members—the program plays a vital role in economic stability for individuals and their families. This is a fundamental aspect of social insurance, helping to mitigate financial risks associated with aging, disability, and death, thus securing a basic standard of living for those affected.