Social Security, like America’s trillions of dollars of underfunded public and private pensions, is nothing more than a ponzi scheme that will eventually fail. Any system that relies on capital drawdowns to fund benefit obligations while the number of beneficiaries continues to soar is, by definition, a rather obvious ponzi. That said, it’s always easier to ‘kick the can down the road’ and hope for the best than to preemptively address the real problems that face retirees…after all, old people love to vote and taking away their retirement money is not a good way to earn their support.
Ironically, it’s not just the lower tiers of the socio-economic spectrum that will bankrupt social security. As a new study entitled “How the Growing Gap in Life Expectancy May Affect Retirement Benefits and Reforms” points out, rich people are living a lot longer than they used to and it’s going to take a massive toll on government entitlement programs over the next couple of decades.
Per the chart below from Bloomberg, a “rich” 50-year-old in 2010 can expect to live 12.7 years longer than someone in the lowest income bracket.
This post was published at Zero Hedge on Apr 24, 2017.
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