Source: The Daily Economy
by Romina Boccia
“Many Americans think Social Security works like a retirement account. In Cato polling conducted in August, about one in four said they believed they had a personal account within the system. That misconception didn’t arise by accident. Politicians routinely describe payroll taxes as ‘contributions,’ speak of a ‘trust fund’ as if it held real savings, and defend benefits as ‘earned.’ Social Security is not a savings program. It is a pay-as-you-go transfer system. Today’s workers’ payroll taxes fund today’s retirees’ benefits. There is no individual account accumulating a balance over time. Payroll taxes are taxes, neither deposits nor savings. Its early history makes that clear.” (01/28/26)
https://thedailyeconomy.org/article/social-security-isnt-a-retirement-account/