It was always a substitute for paying to maintain your parents or grandparents in retirement. Unless you’re an immigrant, you’ve already been getting it back.
They’re paid out according to their contributions. But they’re paid with money current workers are paying in. It is technically a ponzi, but was designed to be sustainable instead of promising reckless profits.
lol it was always just extra income tax to anyone under 40. Only fools expected to see that money come back.
It was always a substitute for paying to maintain your parents or grandparents in retirement. Unless you’re an immigrant, you’ve already been getting it back.
Your parents and grandparents also paid contributions, didn’t they?
The money they paid was so that their parents and grandparents had a little something going into retirement.
Are your parents paid out according to your contributions or their own?
They’re paid out according to their contributions. But they’re paid with money current workers are paying in. It is technically a ponzi, but was designed to be sustainable instead of promising reckless profits.
Exactly. It’s a system that works almost entirely as a pay-as-you-go system, with each generation paying for the retirement of their elders.