If a private corporation operated a pension system structured like Social Security, it would be illegal under laws that prohibit Ponzi schemes. Per the SEC, a Ponzi scheme "pays existing investors with funds collected from new investors." This is how SS operates. Contrary to popular belief, SS doesn't save people's money for them. Instead, it pays beneficiaries mainly by taxing people who are currently working. As birth rates have declined and life expectancies have increased, the ratio of SS taxpayers to benefit recipients has fallen by 45% since 1960. However, politicians have kept SS solvent by leveling higher taxes on every generation of workers. Unless payroll taxes are increased by another 25% or other changes are made, SS is on track to become insolvent in about 12 years. Also contrary to popular belief, the SS Trust Fund hasn't been looted, and no money has been diverted from SS to the SSI program.