could you say more about what makes it a ponzi scheme? in my country there's traditional retirement account you contribute to from your salary whether you work at a private / public org and you get that when you reach 65 is that bad idk much about life but especially clueless about these things
I wouldn’t call it a Ponzi scheme, but it’s less you get an account and more you pay into a big account and get a stipend based on your peak income. So money we pay now goes to pay current retirement benefits. And hopefully by when I retire the next generation will be paying so I can retire.
this is so maddeningly confusing to my brain that's used to you get what you put in
can you explain like I'm 5-10 why is the fund running out if every generation pays? are people in the workforce right now not paying into it or has there been a significant change in demographics between 1983 and now? wouldn't an entire generation need to stop paying for this to happen or is that ismplifying it
> has there been a significant change in demographics between 1983 and now
Bingo. The baby boomer generation that is hitting retirement now is living longer on average than any prior generation. Basically the math for payouts expected a certain amount of eligible people would either not make retirement age or would only collect retirement on average of X years before dying. That looks to be a miscalculation at this point:
