A couple of years ago I put together a quick spreadsheet to figure out the future value of my SS contributions (both mine and my employer's). I assumed 7.5% return each year. I should have used an actual stock market index return - maybe I'll go back and do that. Regardless, the future value turned out to be approximately 5x what was put in. Assuming a withdrawal rate of 5%, it would provide me about 30% more than my SS benefit.
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Originally Posted by Bill14564
My money in SS returned 0% as far as I can tell EXCEPT, I will receive an increasing amount every year until I pass regardless of how much I actually contributed.
On the market side, the amount of money I have in SS the longest is tiny compared to what I contributed the last few years. During that time it has taken at least three big losses. It recovered from each of those but the losses have to be considered as well and could happen again.
The amount that I would be able to withdraw from a market account would also be affected by future market returns affecting a likely decreasing balance. Figure poorly and I would be talking to a reverse mortgage salesman or knocking on my kid’s doors (if I had any children)
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