Social Welfare Policies Questions
There are three main approaches to providing old age benefits through social welfare policies:
1. Universal or flat-rate approach: This approach provides the same level of benefits to all individuals regardless of their income or contributions. It aims to ensure a basic level of income security for all elderly individuals, regardless of their socioeconomic status.
2. Means-tested approach: This approach provides benefits based on an individual's financial need. Eligibility for benefits is determined by assessing an individual's income, assets, and other factors. Means-tested programs aim to target resources to those who are most in need of support.
3. Social insurance approach: This approach is based on the principle of individuals contributing to a social insurance fund throughout their working lives, and then receiving benefits in old age. Benefits are typically based on an individual's contributions and earnings history. Social insurance programs aim to provide a level of income replacement for retirees based on their prior work and contributions.