Sixteen years ago I wrote about problems with the U.S. Social Security System. The system promises a given pension upon retirement (a defined benefit) that is financed by a given payroll tax. It is not a pool of saving that is drown down at retirement. It is pay as you go. https://wcoats.blog/2008/08/28/saving-social-security/
When Franklin Roosevelt established it, average life time after retirement was only about two years. Today life expectancy in the US is 79 years, or 14 years of retirement pension payments for those retiring at age 65. This fact, plus the declining population growth rate, means that the workers being taxed to pay for the currently retired are shrinking relative to those already retired and receiving benefits. The worker to beneficiary ratio of 3.3 in 2005 is projected to fall to 2.1 in 2040. At that point wage taxes will not be enough to cover the current benefits promised at that time.
Various proposals have been made to address this problem. The wage tax could be increased. Retirement age could be increased (20% voluntarily work after retirement already). As people live longer many choose to work longer for more than just the extra income. Pension benefits could be indexed to inflation rather than to wage growth (which has been greater than inflation). But more recently I have proposed replacing Social Security and other safety net programs with a Universal Basic Income for every man, woman and child without exception. Such a remake of our social safety net would have a number of very good features. https://wcoats.blog/2020/08/20/replacing-social-security-with-a-universal-basic-income/
Warren's space 