Have you ever looked at social security figures?

Question

Take a look:
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If I work from age 20 to 60 and earn an average of $50,000 a year my earnings are $2,000,000 and the social security payments will be over $300,000 during that time. I will get back a little more then a $1,250 a month probably after I’m 67 years old if they don’t change that.

Now if I save $3,000 a year for those 40 years its $120,000. This would go into a retirement account at the rate of $3,000 a year where as the Social Security would go to the federal government and an average rate of $7,500 a year. But after 40 years of retirement savings my account in simple interest investments of just 6% will produce $465,000. If I continued to get 6% interest from this amount of money it would produce $2320 a month forever and even allow my kids to inherit that income or I could donate it – with social security I pay 2.5x as much in and get ½ as much out and have nothing for my kids?
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How can anyone defend this system?

estaseo I never suggested investing it in stocks - in fact I suggested a long term rate of just 6% which is about 3.5% lower then the long term average including the crash of 29.

Avail - that is fine - is your income better supplemented with $1250 or $2320? Is it better that you have something left for your kids or that there is nothing? Is it better to pay 2.5x as much for 1/2 of the return?

Answer 1

We have worked 40 years and paid max on SS for each of us. Just think of what we would have if we could have invested it. But now I just want a portion of it back. We have earned it. Not like The illegals or people who paid in very little draw it.

Answer 2

Its not suppose to be a retirement program, never was.
Only a program to supplement the income or lack thereof, of the elderly.
THAT is how I can defend this program!

The biggest problem is that fact they keep jacking up the age so the government doesn't have to exercise fiscal responsibility.

Social security doesn't even figure into my retirement, so I don't even bother worrying about it.

Answer 3

I don't know!
I would think it has something to do woth government control of your earnings... so that way they can dip in and give your money to another person they feel deserves it better than you!
i have other savings plans
Thank God! you can't hope to have enough to retire on when they hand it out to people who never earned it!

Answer 4

Ever heard of the 1929 crash, that's why we have it and need it

Answer 5

Bush tried to change it, remember.