A pay-as-you-go system means
A) you pay for your dinner as you go to the table to eat.
B) current working citizens pay for current retired citizens.
C) there is no need for taxes since current workers pay for current retirees.
D) retirees are paid from accounts that have accumulated with interest over their working lives.

Question

Quizplus · Accepted Answer

A pay-as-you-go system, especially in the context of social security or pensions, means that the contributions from current workers are used to pay the benefits of current retirees. This contrasts with systems where individuals save and invest over their working lives to fund their own retirements.

A Pay-As-You-Go System Means