Quote:
Originally Posted by jimbomaybe
The average rate of return from the markets over their long history is about 7.5- 8%, compound that and you have a good return, certainly better that your return from SS
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Not sure what numbers you're looking at, but here's mine (rounded):
Between my payroll deduction and employer contribution, I've paid in just under $60,000 in social security taxes.
I'm getting $40 more per month in social security payments than I did when I started getting them, just 1.5 years ago. I anticipate around $20 more per month for 2026. Regardless:
At the current total of my social security checks, I will have received 100% of what I put in, and what my employer put in, by the 7th year of collecting social security checks. I won't even be 70 years old yet, at that point, because I started getting them when I was 62.
This means that all the checks I receive after I turn 70, will be "in addition" to what I/my employer paid in. If I live to be 90, that'll mean 100% of what I get post 70-years-old will be "profit." I dunno - seems like a pretty good deal to me. Get a 100% return on your initial investment in 7 years after the start of the payout, and then keep getting steady monthly checks for the next 20 (or more) years.