The Great Social Security Debate. The BACKGROUND story. How does it all really work? I ask you all to consider whether your 'Social Security' parallels the UK system... UK State Retirement Pension, (a.k.a. The Old Age Pension), is the main State Benefit that we each get. My hope is that I can add some understanding to the complexities, and to explain why benefit cuts or taxation increases, or some balance between, may be needed... In the UK workers and their Employers pay National Insurance, based on the employees salary. a tax system in the United Kingdom paid by workers and employers for funding state benefits.  https://en.m.wikipedia.org/wiki/National_Insurance/ (main document I quote) The term 'State Benefits' covers a variety of payments. Weekly income and some lump-sum benefits are provided for participants upon death, retirement, unemployment, maternity and disability. The vast majority of the 'tax' received by the government is paid out almost immediately... Government Actuary estimated the 2012-13 results for the National Insurance Fund as follows £.....Billions Basic State Pension........................ 79.321	 Widows'/Bereavement benefits........ 0.571	 Incapacity Benefit.............................. 2.591	 Unemployment benefit...................... 3.463	 Maternity allowance & guardians...... 0.373	 Administrative costs & transfers....... 4.693	 Total Payments Out ...................... 91.012 Total National Insurance received.. 84.263 There was a deficit because benefits PAID exceeded National Insurance taxation RECEIVED. The shortfall was provided from other general taxes.. There is no fund out aside for the future We rely on taxation from current workers to pay pensions to retired workers