"There are millions of retirees today who rely on Social Security for income. And if you're a member of the workforce, chances are, you're banking on being able to collect Social Security once you're ready to end your career. But is Social Security as legit as the government would like people to believe? Jim Cramer and Elon Musk don't think so. And both have been very vocal about the fact that Social Security is nothing more than a scam."
"Social Security is a legal, government-run program designed to pay benefits to older Americans, as well as people who fall into other categories. The process for funding Social Security is clear. Workers pay taxes on their wages, and paying enough into the system entitles you to benefits down the line. A Ponzi scheme is very different. It's an illegal, fraudulent investment tactic where early investors are paid with money from new investors rather than actual profits, creating the illusion of strong returns."
Millions of retirees rely on Social Security for income, and many workers expect to collect benefits after ending their careers. High-profile critics like Jim Cramer and Elon Musk have labeled Social Security a Ponzi scheme, with Musk calling it "the biggest Ponzi scheme of all time." Social Security operates as a legal, government-run program funded by payroll taxes; workers who pay into the system earn entitlement to future benefits. A Ponzi scheme is a fraudulent investment that pays earlier investors with funds from new investors rather than real profits. The program discloses financial information annually via trustee reports. Despite legitimacy, benefits may be insufficient alone, and retirees are generally advised to aim for 70% to 80% of pre-retirement earnings.
Read at 24/7 Wall St.
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