Ponzi scheme investment scam by which early investors are paid off from the contributions of later ones, 1957, in ref. to Charles Ponzi, whoperpetrated such a scam in U.S., 1919-20.
Social Security taxes are taken out of your paycheck if you are a W2 employee. We've heard for years that it is a "safety net" for people when they are done working...that the money we put in is a "savings" that will help us when we retire.
I started working when I was 16. My Social Security statement comes every once in awhile and supposedly I'm due to get at least $1,500 a month when I retire. I consider it a blatant lie...and wishful thinking if I believed it.
"People retiring today are part of the first generation of workers who have paid more in Social Security taxes during their careers than they will receive in benefits after they retire. It's a historic shift that will only get worse for future retirees, according to an analysis by The Associated Press."
By definition, the original "investors" into Social Security got a greater payoff while the rest of us at the "bottom" of the pyramid get screwed.
Obviously, the Social Security program either needs serious reform or should just be scrapped. It was never intended to provide for our retirements. It was meant for widows. Now people treat it like it's their guaranteed retirement income. Nothing could be further from the truth.
People need to learn how to prepare and save for their own futures. Even after the massive losses the private sector received in the last few years, most people are still "ahead" if they've been investing over the long term. My own investments dipped quite a bit but are steadily increasing (I have a fairly low risk tolerance so my investments are pretty conservative).
My vote would be to scrap social security for all new people entering the work force...but I realize the government still needs the poor saps at the bottom of the pyramid to continue paying for those currently at the top. It's a hopeless cycle that only benefits politicians who try to buy our votes with promises of "reform". *sigh*
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