Advanced Diploma of Financial Planning (ADFP) Practice Test 2025 - Free Financial Planning Questions and Study Guide

The original intention behind Social Security benefits was to serve as a supplemental income source. Established in response to the economic turmoil during the Great Depression, Social Security was designed to provide a safety net for workers and their families, primarily aimed at reducing poverty among the elderly. The program's framework was such that it would ensure retirees, along with their dependents, received some level of financial assistance, but it was never intended to be the sole source of income.

The concept was to enhance financial security rather than replace all other forms of income. By doing so, it allowed retirees to supplement their savings, private pensions, and other income sources while providing basic support during their retirement years. This foundational idea reflects the understanding that individuals would need multiple streams of income in retirement to maintain their standard of living, which continues to be a principle of personal financial planning today.