Recently I had a rather uncomfortable realization that I am older than either of my grandmothers were at my parents' wedding. To my mind, they were both old, and not just because I was looking at their ages from a much younger perspective. In the photographs in my parents' wedding album, both of them look very much like elders, with wrinkled skin
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More precisely, the average or typical life expectancy, since these things follow a statistical pattern
The people who did manage to actually reach that age would be a small fraction of the general population, and very few of them would live long enough to collect much of it.
Effectively, it worked like insurance - the government was betting most people wouldn't live long enough to collect it, while individuals were betting they'd be one of the lucky few who would.
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