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Social Security isn't a Ponzi scheme; it isn't even an investment scheme. It is a welfare program with a funding model loosely designed to resemble insurance. Y
by Drbble 15y ago
Social Security isn't a Ponzi scheme; it isn't even an investment scheme. It is a welfare program with a funding model loosely designed to resemble insurance. Your payroll tax today does not entitle you to any promised future benefit beyond "whatever the SSA and Congress decide to pay in the future." Contrast that to a pension plan, which is a defined benefit from the moment you start working.
- jarek 15y agoNitpicking, but a lot of pension plans these days are "defined contribution" rather than "defined benefit". You put in whatever amount monthly (the contribution), what you get out depends on how the plan does in the next 40 years.