Social Security is not a bonafide insurance or retirement program, but an arbitrary government program. I repeat this from time to time as the majority of Americans believe what politicians tell them.
Benefits today often pay off more than are paid in. Benefits paid to the retired are from folks still working.
In the private sector, this is called a Ponzi scheme. It's illegal, for good reason.
About 65 years ago, there were over 16 people paying Social Security tax for each retiree. Now, there are fewer than three. And in about 20 more years, the funds will run out; the scheme will be fully obvious.
There are no reserves; the Social Security Trust Fund is a fictitious account, existing only in the mind of politicians.
Payroll taxes should be abolished. Social Security should be funded from income taxes on pay-as-you-go.. There should be an option for a taxpayer’s individual allocation to go into a private Social Security fund, in a stock index or U.S. savings bonds; a true insurance fund with reserves and guarantees. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
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