Tesla and SpaceX CEO Elon Musk took aim at Social Security on Monday, calling it the “Biggest Ponzi scheme ever.” Social Security provides retirement income and helps millions of Americans qualify for Medicare.
What Happened: Musk was replying to a meme comparing Social Security to a Ponzi scheme (a fraudulent investment scheme). He added, “Maybe AI and robots will save it though.”
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In the comments section, people were divided. While some said that many people who have never paid into Social Security, end up getting the benefits, others said that the tech billionaire was “badmouthing a system that is a primary means of survival for many elderly Americans.”
Why It Matters: The long-term viability of Social Security is a major concern for many Americans. They worry about its ability to disburse full benefits in the future. According to the Social Security and Medicare Trustees Reports, by 2033 the fund will only be able to disburse 77% of the total scheduled benefits.
BlackRock CEO Larry Fink last month emphasized the urgency of addressing the global “retirement crisis.” With medical advancements extending life expectancy, traditional approaches to retirement savings and working patterns may need significant reform.
While concerns exist, there’s also optimism. A 2023 Gallup survey shows that “Americans are more optimistic about the future of Social Security than they have been in recent years.” Among nonretired Americans, 50% expect to receive benefits, compared to 47% who don’t.
As of 2024, the average retirement age for retirees in the U.S. is 64, with workers expecting to retire at 66. The full retirement age is 67 for those born in 1960 or later
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