Recent news reports indicate that the Social Security system is on pace to be insolvent by 2032. Contrary to what some have said, Social Security isn’t a Ponzi scheme or a scam. Little history lesson: The Social Security system was founded in 1935; the worker-to-beneficiary ratio was 159.4 to 1. In 1983, President Reagan and Speaker Tip O’Neill were staring down Social Security insolvency. Allocations in the Social Security TSP can be adjusted once a year to prevent people from trying to time the market.