The wide majority of employers shifted from offering traditional defined-benefit pension plans, which also guarantee a certain benefit level upon retirement, especially toward defined-contribution plans, like 401(k)s, which pay a certain benefit based on a worker’s contributions but also the rate of return they receive.

Therefore, Social Security becomes the only source of guaranteed retirement income for workers, especially since it isn’t subject to any kind of investment risk or financial market fluctuations.

The minute someone starts receiving Social Security, their benefits automatically increase to keep up with the rapid pace of inflation while also ensuring that people won’t fall into poverty as their age advances. In comparison, the majority of private pensions and annuities aren’t adjusted for inflation.