Moral Outrage
Whew! God help us!

What your Social Security contribution should be worth

The government is now referring to our Social Security checks as a “Federal Benefit Payment.” –This isn’t a benefit – its earned income!

Not only did we all contribute to Social Security but our employers did too. It totaled 15% of our income before taxes. If you averaged $30K per year over your working life, that’s close to $180,000 invested in Social Security.

If you calculate the value of your monthly investment in social security ($375/month, including both your and your employer’s contributions) at a meager 1% interest rate compounded monthly, after 40 years of working you’d have more than $1.3+ million dollars saved! This is your personal investment.

Upon retirement, if you took out only 3% per year, you’d receive $39,318 per year, or $3,277 per month.

That’s almost three times more than today’s average Social Security benefit of $1,230 per month.

And your retirement fund would last more than 33 years –Meaning if you retired at age 65, it would last until you’re 98!

I can only imagine how much better most average-income people could live in retirement if our government had just invested our money in low-risk interest-earning accounts. Instead, the folks in Washington pulled off a bigger Ponzi scheme than Bernie Madoff ever did.

And now, to add insult to injury, they’re calling it a “benefit,” as if we never worked to earn every penny of it.


2 Responses to “What your Social Security contribution should be worth”

  1. Looking at it this way, Social Security should be called Our Earned Retirement Income.

    This explanation is the very thing that should cause us to demand that our legislators bring some sense into our government and find a way to keep Social Security and Medicare going, for the sake of that 92% of our population who need it.

    If more money is needed for this (and other legitimate needs), here’s a novel idea: Reduce the military budget to support our own population. Get out of the countries who don’t want us there. Bring our soldiers home and invest some of the $700B+ in giving them new careers, building roads and parks, teaching our children, creating new technologies, discovering cures for illness.

  2. For more on “Reducing the military budget to support our own population”, see:

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