Why do we need social security?

[oikoσ]

You are right that SS is similar to a Ponzi scheme. However, it would work if Congress could keep its cotton-picking hands off the fund. Instead, they regard it as a source for pet projects that are not in the budget.

The trouble is that we can't afford to stop it. Bush's brilliant idea to allow people to invest the money that would have been taken out in the stock market would have dried up the supply for us old fogies who depend on it for our daily expenses. Further, a stock market crash would have wiped out the retirement funds for the next batch of retirees. We can thank Bush for that too.

Yes, SS does not draw much interest. Neither does my savings account. What you have to do is to plan on a mix of places to put your money. When you are young, you can afford to gamble a bit on high-risk investments. As you age, you need to switch to more conservative stocks and bonds. A tip for you, bought with a big chunk of my retirement funds: when your broker recommends a stock that his firm is pushing, run the other way. On the other hand, my investment in a utility stock (conservative and well-managed) was enough to let me buy a house and mini-farm a few years later.