this post was submitted on 06 Dec 2025
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That's exactly how it works, well other than me having the dates off as the Boomers weren't even born when Social Security was enacted by FDR. When Social Security was enacted, retirees started receiving benefits even if they never paid into the system, which was paid for by the current workers who were paying into the system. It's been like that ever since. Social Security is also not a pension.
You are correct that for most people would be better off investing their Social Security taxes into a hedge fund but workers don't really have a choice in the matter.