This is a fiction. The money you pay into SS is used to pay today's pensions.
It is not squirreled away for your future retirement. Those benefits will come
out of the SS taxes paid by your children. It is the most hare-brained
retirement scheme in the world. It was set up this way, with a cosmetic layer
of something that looks like insurance, and the whole ridiculous trust fund
fiction, so that it would be politically palatable. A normal system financed by
taxes was considered to "socialist" for the US. Nonetheless, that is exactly
what SS is.
PICTURE OF THE WEEK: http://www.fotocycle.dk/paws
On Mar 19, 2014, at 5:56 PM, Charles Geilfuss wrote:
> The system (or scheme, if you
> prefer) is designed such that what you receive in benefit is determined by
> what you pay into the system.
Themed Olympus Photo Exhibition: http://www.tope.nl/