Social Security is a

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Social Security is a "pay-as-you-go" system, which means that current workers pay for the benefits of current retirees. The taxes collected from current workers are used to pay benefits to current retirees, and any excess funds are typically invested in US Treasury bonds. This differs from a fully funded pension plan in which contributions made by workers and employers are invested and accumulated over time to support future benefits, and it also differs from a federally insured or government sponsored private pension plan in which benefits are funded through employer and employee contributions and investment earnings.

Social Security Is a