Posted by Po-cheng Huang
As I search for general American public’s plans for retirement, I learn that the Social Security program is a big part of general Americans’ retirement life. While looking into the structure of Social Security program, I came across the criticism on Social Security being the greatest ponzi scheme of all time since the Berni Madoff’s 500 Billion ponzi scheme were discovered in late 2008 and ponzi scheme is again on the headline. The way some articles described it is that Social Security simply uses the current worker’s income to pay off current retirees. That is exactly what the ponzi scheme is like, paying the previous victims with new victims’ money, and the game will keep going as long as there are enough new victims coming in. Unfortunately, this is the reason why lots of people are calling for Social Security reform because now the system is facing significant financing problem since the U.S. population is ageing and Social Security will eventually run out of money to pay the retiring baby boomers, and thanks to the advances in the medical field, people now lives longer and healthier which will ended up making Social Security shorthanded if no changes are being done and will most likely have significant affect on future retired Americans. So here is what I think, is either people start saving for their retirement and forget about Social Security and have a comfortable retiring life, or depend on Social Security and suffer when it collapse as the result of government failed to make changes to it or step up to help.
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