‘The thought of living to 100 terrifies me’: Is Social Security a giant Ponzi scheme?

The concern about Social Security being a giant Ponzi scheme is not new, but it's gaining traction as the US population ages. The program's trust funds are projected to be depleted by 2035, according to the Social Security Trustees' report. This has led some to question the sustainability of the program, with some critics arguing that it's essentially a pay-as-you-go system where current beneficiaries are being paid with the contributions of current workers.

The demographic 'run' on Social Security is a pressing issue. With more baby boomers retiring and fewer workers contributing to the system, the strain on the program's finances is increasing. This has significant implications for fund managers and investors, who need to consider the potential impact on their clients' retirement plans. As the program's finances continue to deteriorate, it's likely that policymakers will be forced to consider reforms, such as raising the retirement age, increasing payroll taxes, or means-testing benefits.

What's next to watch is how policymakers respond to the looming Social Security crisis. Fund managers and investors should keep an eye on proposed reforms and their potential impact on the program's finances and beneficiaries. Additionally, the upcoming Social Security Trustees' report will provide an update on the program's financial health, which could have significant implications for the markets and retirement planning strategies.

Originally reported by marketwatch.com. FundNews adds analysis for finance & markets readers.