posted on Feb, 12 2018 @ 09:08 AM
originally posted by: toysforadults
a reply to: Fools
Actually that's what my entire video was about.
It was about how unsustainable social security and pensions.
It wasn't your video but that isn't important. If a pension was run logically, there should be no reason why it should be out of funds. The reason is
that pensions are people giving money to their employer and their employer investing that money in the market. Since the market has went from around
7000 points in the mid 1960's and now to 20,000 plus means that their money invested should have at least tripled at this point. And that isn't
counting all the dividends along the way. So a pension could only logically fail if it is being horrendously mis-managed, and many of them are,
particularly government pensions (railroad pensions being a odd exception).
Social Security however is a totally different bird. It is quite simply a ponzi scheme. The first problem is that people live much longer than they
used to. I think its not unreasonable to assume that most of us will live to be 75. Lets say you worked from age 16 to 65. You have thrown alot of
money at that institution, and will get paid a monthly income for 10 years (supposing you die at 75). Did the amount you put in equal that amount you
are getting paid? Probably not. Now imagine that there are many people that live up to their 90's. Did they put in what they are earning? Absolutely
The fix for social security would be to put all individual earnings into an individual account. People do not like hearing that, but it is the
absolute only way that it will be fixed if there is an actual will to fix it.
edit on 12-2-2018 by Fools because: .