US Social Security Math (1 Viewer)

[Jacob Mathai]

There is a talk among economic pundits that SS recipients collect lot more money than what they contributed during their working years. That is not true in my case.
My contribution over 38 years: $130K
Employer contribution : $130K
Total : $260K
Assuming the money was invested in Government bonds and Bonds gave an average annual return of 6%, the current value will be $700K.
At 4% withdrawal per year, I must get $28/year.
Financial advisors say 4% withdrawal will not deplete the principal because investments can earn 4% per year (average) in today’s economy. If I invested the money myself, I could get $28K/year without depleting the principal.
My Social security income will be around $25K/year at age 66.
I say I am not getting any more that what I invested in Social security. I also understand Social Security pays disabled persons and also non-working spouses (50% of working spouse’s Social Security benefits). SS may be paying other groups of people also.

The problem is that Government spent the money as general budget and created a big ponzi scheme.

 

[Fifty2One]

The other part of the problem is that people did not (would not or could not) put away any of their own money. Sad so many people are reaching their 'golden years' to discover that then need to take in borders and work at a department store as a 'greeter' or buss tables at a diner in order to make ends meet.