student (01/28/83)
One of the major problems of the social security system is that
most people do not understand the mathematics behind it. I have
heard many complaints in the range of "Well thirty years ago
there were five people paying in for everyone receiving benefits
and now there are three!" and the ever popular myth that the
benifits that are taken out of each persons pay check are held
until that person retires.
If a private individual tried to set up a system the same as
the social security system he would be arrested for "pyramiding".
(pardon the spelling, or lack of it!) The current generation is
paying for the SS of the retired. Right now the retired age group
is the fastest growing population group in the country. With the
birth rate showing a decrease after the "Baby Boom" of the late
1940's this means that the "pyramid" is growing top heavy. With
the amount of time money can be put into the system (18-65)
remaining constant while the amount of time money is paid out (74
and rising) you can see that the pyramid is gowing to crash
sooner or later if nothing is done. (Even right now all we can
probaly do is soften that crash).
If anyone has any ideas call me and let me know.
Sincerely;
Greg H.