Quote:
Originally Posted by Stu from NYC
Or increase the full retirement age to 75 or so. They should have done this awhile ago.
It was to be a govt funded pension system not a system of wealth transfer.
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The way the system works is that low income workers receive more money in retirement than they contributed, and high income workers receive less money in retirement than they contributed. In that sense, it is a wealth transfer system. The Social Security system payout formula was designed that way and has always operated that way. Also, high income retirees are required to pay income tax on their benefits, but low income retirees receive their benefits tax free.