Is Social Security a 'Ponzi scheme?' Warren Buffett and Charlie Munger’s response — and how to secure your retirement

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Social Security has agelong been a taxable of aggravated treatment successful America, but investing fable Warren Buffett’s presumption connected the contented is unmistakably clear.

During an yearly shareholder gathering for Buffett’s aged company, Berkshire Hathaway, an assemblage subordinate erstwhile posed a blunt question to him: “I’m asking for your sentiment connected Social Security. Shall we telephone it the government-sponsored Ponzi strategy for retirees (1)?”

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Buffett didn’t mince words.

He explained that Social Security is fundamentally a “transfer outgo by the radical who are successful their productive years to the radical who are past their productive years.” However, helium liked that mechanism, stating, “I deliberation that the work for the radical who bash good successful this nine is to supply a tenable level of sustenance for those beyond their productive years.”

Buffett’s right-hand man, the precocious Charlie Munger, besides defended the program. He said that helium felt adjacent much powerfully than Buffett that the Republicans challenging Social Security were “out of their minds.”

His remarks were met with laughter and applause from the audience.

That said, the assemblage member’s interest didn’t travel from nowhere. Here’s wherefore immoderate interest that Social Security is simply a Ponzi scheme, and however you tin marque your status much secure.

Some of the astir salient economists of our clip person questioned the sustainability of Social Security — oregon adjacent compared it outright to a Ponzi scheme.

Most notably, Nobel Prize-winning economist Milton Friedman erstwhile called Social Security “the biggest Ponzi strategy connected earth,” successful a 1999 nonfiction for Hoover Digest (2).

And much recently, the contented has travel backmost into the spotlight aft President Donald Trump fired a labour statistic authoritative successful August 2025, filling the spot with economist E.J. Antoni — who has called Social Security a “Ponzi scheme” that “you’re not going to beryllium capable to prolong (3).”

His recommendation? “You request to sunset the program.”

But what precisely bash Friedman and Antoni mean erstwhile they accidental Social Security is simply a Ponzi scheme, and wherever bash the concerns travel from?