28 Nov '10 19:48>
hmm. SS taxes me at 12.4% of income for 45 years compounded annually, then pays me ("about 33 to 40 percent of a worker’s average wage from the year prior to retirement"😉 for around 12 years (til i croak at average age 77 or so).
given that i'm starting out in life at a low wage, even so, is that a good deal?
http://www.freedomworks.org/publications/is-social-security-a-good-deal-for-retirees
Max Pappas
FreedomWorks
Jul 30, 2003
Is Social Security a Good Deal for Retirees?
...
Had an average-earning 65 year old today been allowed to own the Social Security taxes he paid over his lifetime in a personal account, earning just 7 percent per year (a 75/25 stock/bond portfolio would have returned about 10 percent over his working years), he would have $188,573. Continuing to earning just 7 percent, this would provide $1,000/month and grow to $197,553 over his expected 16 years of retirement. It would continue to grow, while providing $1,000/month to his kids once he passes away, for his grandchildren, and so on. Instead, he gets $895 per month from the government until he dies and is left with nothing to pass on.
It is regrettable that today’s seniors were required to spend their working lives contributing to a system that does not allow for the accumulation of wealth. They are stuck in that system for the remainder of their years, but their children don’t have to be. While today’s retirees cannot pass on the accumulated wealth they would have had, they can use the power they wield in the ballot box to make such an opportunity possible for their kids by supporting personal retirement accounts.
...
given that i'm starting out in life at a low wage, even so, is that a good deal?
http://www.freedomworks.org/publications/is-social-security-a-good-deal-for-retirees
Max Pappas
FreedomWorks
Jul 30, 2003
Is Social Security a Good Deal for Retirees?
...
Had an average-earning 65 year old today been allowed to own the Social Security taxes he paid over his lifetime in a personal account, earning just 7 percent per year (a 75/25 stock/bond portfolio would have returned about 10 percent over his working years), he would have $188,573. Continuing to earning just 7 percent, this would provide $1,000/month and grow to $197,553 over his expected 16 years of retirement. It would continue to grow, while providing $1,000/month to his kids once he passes away, for his grandchildren, and so on. Instead, he gets $895 per month from the government until he dies and is left with nothing to pass on.
It is regrettable that today’s seniors were required to spend their working lives contributing to a system that does not allow for the accumulation of wealth. They are stuck in that system for the remainder of their years, but their children don’t have to be. While today’s retirees cannot pass on the accumulated wealth they would have had, they can use the power they wield in the ballot box to make such an opportunity possible for their kids by supporting personal retirement accounts.
...