The government refers to our Social Security checks as a federal benefit payment. It isn’t a benefit. It is earned income. Not only did we contribute to Social Security, but our employers did also. It totaled 15 percent of our income before taxes.
If you averaged $30,000 per year, over your working life, that’s about $180,000 invested in Social Security.
If you calculate the future value of your monthly investment in Social Security ($375 per month, including your and your employers’ contributions) at a meager 1 percent interest rate compounded monthly, after 40 years of working you’d have more than $1.3 million saved.
Upon retirement, if you took out 3 percent a year, you would receive $39,318 per year, or $3,277 per month. That’s almost three times the average Social Security benefit of $1,230 per month.
Also, your retirement fund would last more than 33 years (until age 98 if you retired at 65). This does not consider the people who pay in but die prior to collecting Social Security or those who die prior to age 98.
Ask your representative and senator what they did with our money.
Frank B. Kline