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Economics

Social Security Pyramid Scheme Begins to Topple

People retiring now will be first to earn less than they put in rather than more.

Reason Staff | 8.6.2012 5:30 PM

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People retiring today are part of the first generation of workers who have paid more in Social Security taxes during their careers than they will receive in benefits after they retire. It's a historic shift that will only get worse for future retirees, according to an analysis by The Associated Press.

Previous generations got a much better bargain, mainly because payroll taxes were very low when Social Security was enacted in the 1930s and remained so for decades.

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Reason Staff
EconomicsSocial Security
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