• meeeeetch@lemmy.world
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    7 hours ago

    The money they paid was so that their parents and grandparents had a little something going into retirement.

      • meeeeetch@lemmy.world
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        9 minutes ago

        They’re paid out according to their contributions. But they’re paid with money current workers are paying in. It is technically a ponzi, but was designed to be sustainable instead of promising reckless profits.

    • silence7@slrpnk.netOP
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      1 hour ago

      Exactly. It’s a system that works almost entirely as a pay-as-you-go system, with each generation paying for the retirement of their elders.