You can expect to pay $457,838 in Social Security taxes over your working life for retirement and survivors benefits. For those taxes, you can expect to receive $2,805 a month in Social Security retirement benefits. Your rate of return under today's Social Security is 0.12%.I put a link to it up on the left.
However, if you had been able to invest your Social Security taxes in a Personal Retirement Account (PRA), you would have had a total of $1,294,360 when you retired. Your monthly benefits would have been $10,544. You lost $7,738 a month.
Friday, January 28, 2005
Found a interesting little toy via the Corner. It allows one to calculate what the likely differences between Social Security and a Personal Retirement Account might be. Of course, it's all rather speculative, but I don't see that it's any more speculative than positing some way for Social Security to turn out fine without this kind of reform. Here's what happened when I put in my info. The only things I changed from the default were my yearly earnings and my zip code.