Is Social Security really a Ponzi scheme?

[flatlander]

Yes, it absolutely is a 'pyramid' or 'Ponzi' structure.

AND the big problem I have with it, that most people overlook is this---If I pay into SS until I retire, wait a couple years before I collect too maximize my check, then on the way to the bank to cash the FIRST CHECK they send me I get run over by a truck, my benefits END, right then and there!!! If I had put the same amount of money into my own private retirement account then my will would leave it to my family, church or my dog.

My problem with SS is that we pay into it to pay other people. I'm 39 in a few days, I don't expect to see much of anything from it, but if I do the amount will be NOTHING compared to what I could of had if I'd have invested in a good PRIVATE retirement account.

I think the govt knew when they put this together that it would take that 'personal responsibility' away from as many people as possible. People are/were using it as their only hope in retirement.

[VorTexan]

Please don't go for Change part 2 tvc.

[tvc184]

Swing and a miss.

Insurance companies raise the rates on life insurance policies as folks get older. For instance, I know alot of folks who paid on big term life insurance policies for years. When they expired it was not cost effective to continue them so they stopped. Yes, those people will still die someday but they let their policy lapse. So I'll say it again, an insurance company isn't going to issue a policy that they know will be a loser 90% of the time. Just won't happen.

One last statement. People can believe whatever they want for political reasons.

In a real PS you are investing your money with the intent of a return. You could even take your money out. You cannot take your money out of SS, opt out or change your contributions.

It is merely employment insurance by another name and another means of taxing. To get any money out of the insurance you have to reach a certain age. If or until it runs out of money, you will get the money that you were guaranteed when you put the money in. To date I have not heard of anyone not getting their SS checks so the idea of it being an illegal (if it wasn't the government) scheme doesn't wash. You are given the money at the end that was promised at the beginning. How is that a scheme?

It might be ill conceived, it might have run its useful course or maybe it needs to be drastically modified but that doesn't make it an illegal scheme.

Out.

[RdRdrFan]

One last statement. People can believe whatever they want for political reasons.

In a real PS you are investing your money with the intent of a return. You could even take your money out. You cannot take your money out of SS, opt out or change your contributions.

It is merely employment insurance by another name and another means of taxing. To get any money out of the insurance you have to reach a certain age. If or until it runs out of money, you will get the money that you were guaranteed when you put the money in. To date I have not heard of anyone not getting their SS checks so the idea of it being an illegal (if it wasn't the government) scheme doesn't wash. You are given the money at the end that was promised at the beginning. How is that a scheme?

It might be ill conceived, it might have run its useful course or maybe it needs to be drastically modified but that doesn't make it an illegal scheme.

Out.

Plenty of folks get their money back before a Ponzi scheme blows up. So are you telling me that I can fully expect to receive my Social Security checks in 30 years or so? You really believe that it will be around then? If so, I've got a bridge I'd like to sell you.

So really, answer my earlier question. Do you think that Social Security would be allowed to run exactly as it currently does if it had been developed and was being run by a private company?

I don't. I think there would be massive congressional inquiries and probably folks going to jail........and rightfully so.