Quote:
Originally Posted by dewilson58
Has anyone done the math.........with time-value of money, how many years do you need to draw on SS (full SS) in order to get your & your employer's dollars back???
Too much fun for me to do.
I think it's about seven years without time-value.
Jus wondering.
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Don't forget the fact that there are increases most years. Might not be much but if you get the maximum monthly check of $4555, and it goes up 3% next year, you'll be getting $4692/month next year. And if it goes up another 3% in 2025, then you'll be getting $4832/month in 2025. And so on.
Meanwhile, you'll be getting this (plus whatever other increases) every year for 7 years - and on the 8th year, you will now be getting money that you never paid in. How is that possible? Because the generations behind you are footing the bill. Your payroll deductions are paying for the generations in front of you, they're not paying for you. If you live for 25 years past your first SS check, you'll have collected more than 250% of what you put in.
The problem with the system is that there are SO many baby boomers receiving checks now, and the generation who's paying for it - are fewer in number. So there's not enough coming in to support the people receiving. So they rely on the next generation behind them, and so on and so forth. Once the Boomers die out, they'll be back on solid ground. They just have to make it through this generation.