Quote:
Originally Posted by PilotAlan
Even a relatively low income worker, if that 16% of their income was invested in market-tracking mutual funds, would be a multi millionaire by their 60s.
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If you allowed workers to invest 16% for 40-45 years, how do you fund social security during that 40-45 years?
Currently, What you pay into the system does not go into an account for your retirement.
Instead, the money we paid was used for Social Security payments for people that were retired at the time - our parents, aunts, and uncles. That reduced the burden of having to support our parents and pay for their medical treatment.
Our benefits are paid for by younger workers.