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.