2 ms·
I think it's the (less interesting) average benefit minus tax per year, not in aggregate. The latter is presumably much harder to measure. I'd be shocked if hig
by twoodfin 10y ago
I think it's the (less interesting) average benefit minus tax per year, not in aggregate. The latter is presumably much harder to measure. I'd be shocked if high earners with average life expectancies could expect to recoup (inflation-adjusted) their lifetime contributions, given the "bend points" of the benefits formula.
- basseq 10y agoCorrect. Given average life expectancies, the IRR of contributions vs. benefits of Upper-Middle and Top 20% are 2.9% and 1.7%, respectively. Given a 3.22% inflation rate, both are negative (meaning the returns don't even keep up with inflation).