By skyforbes I just did some math that shows how bad social security retirement payouts actually are:
- Including employer contributions, I’ve paid in about $175k into SS over the past 11 years.
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Retirement timeline is ~2054
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If I stop working today, SS is expected to pay out about $2100 a month in 2054 dollars.
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If that 175k had been invested in S&P funds and I stopped working today, it would likely grow to around $4.8 million in 2054.
So the government basically took a sum that could have provided me a $5 million retirement and turned it into $2100 a month. Great.