Quote:
Originally Posted by GGG
When you begin paying into this plan you have an equal probability of being on the long end or the short end. Therefore you pay in for the expected value of your payout. Since you pay in for your expected value you aren't subsidizing anyone.
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Except for the decades and decades of undercontributions by the boomers and previous generations that those currently working are catching up for.
We're definitely subsidizing them.
Edited to add: t least the younger boomers are playing catch up now. The folks who retired in the 90s got an unbelievable deal on CPP, paid for by currently working generations. I can sort of see the ponzi scheme characterization, because those generations left the tank empty and require future suckers to pay the bill. It would have collapsed except participation is mandatory so people couldn't quit when it became a terrible deal.