Social Security Financing Structure - Social Security operates on a pay-as-you-go basis, where current workers' taxes fund current retirees' benefits [1] - Demographic shifts significantly impact Social Security due to the changing ratio of workers to retirees [1] Demographic Trends - In the 1960s, the worker-to-retiree ratio was 5 or 6 to 1 [1] - Currently, the worker-to-beneficiary ratio is approximately 3 to 1 [2] - Projections indicate a future worker-to-beneficiary ratio of around 2 to 1 [2] Cost Burden Implications - The declining worker-to-beneficiary ratio increases the cost burden on each worker [2]