Retirement logistics... help me understand

Hi,

There are a few ways of doing this. Social security is paid out of your paycheck automatically and eventually when you retire you get a sum of money according to the amount of years you worked and what your salary was. It's not like a bank where you save the money but instead you get a larger sum than what you put in.

There are also other ways of arranging your retirement. You can put aside money in a private pension fund. With this system you basically are responsible for putting aside the money and eventually you collect the sum accumulated.

Hope this helped.