Quote:
Originally Posted by Guest
You are required to pay into SS but you draw out more than you put into it. Figure out how much you had to put in, now figure out how much you believe you and your spouse will withdraw for a lifetime. Which figure is higher?
You cannot say you would have been able to invest that same amount and get a higher return - we all know that the vast majority do not or would not start any saving for retirement until their mid-40's unless forced to do it.
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I think you may have missed the fact that it does not have be a dollar for dollar match of what was put in to be equitable.
The SS powers that be take the money and invest it, plus they have the contributions of the young paying in and the SS investing and add it all together as a source from which to pay out.
So if one want a comparison of paid in vs paid out the interest earned would have to be taken into account.
And like most corporate retirement accounts it probably earns more than the anticipated growth to benefit ratio. Many companies have dipped into to excess retirement reserves for that reason.....as has the federal government....without paying back what it took.....