Quote:
Originally Posted by buggyone
Just a question here - not an arguement.
Let's say you worked for 40 years at a job and paid your 5% salary deduction into Social Security for all the years. You retire and start drawing your monthly Social Security benefit at age 65. You (let's assume) live to be 90 years old. In those 35 years between age 65 and 90, will you have taken out more or less than what you put into Social Security over the 40 years of working?
If the answer is more, then Social Security is an entitlement? Also what if your spouse has never worked, don't they get part of the Social Security benefit also?
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Your contribution since 1991 has been 7.65% by you and 7.65% by your employer into your account for a total of
15.3% of your yearly salary.
If you earn the Max for 45 years compounded at 5% at the end of that period the pot of money in
YOUR account would be $725,744!!
At 5% interest this pot would yield
$36,287 per year, which is more that your SSA payments. If you acturalize it over the next 30 years to age 95, it would throw off
$47, 210.
Yes not all employees earn the Max and subsequently their SSA payment do not max out either!
I will share my spreadsheet if anyone would like it - just PM me with an email address.
Blueash - My whole point is that it has been mismanaged and IMHO if it was managed correctly, it would have gone on it forever and provided for all you mention!