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From your link "...and turning 65 in 2010 would have paid $722,000 into Social Security and Medicare and can be expected to take out $966,000 in benefits." So
by TheLoneAdmin 8y ago
From your link "...and turning 65 in 2010 would have paid $722,000 into Social Security and Medicare and can be expected to take out $966,000 in benefits."
So basically, employees are giving the government a 45 year loan at zero interest. Even at just a 1.5% rate, the typical employee pays their own way.
- traek 8y agoThat's already accounted for in the "paid-in" figure: > (Remember, the couple didn’t literally pay out $600,000; that’s the current value of what they paid out over the years, plus an additional 2 percent they may have gotten had it been invested.) Even accounting for inflation and investment, the average worker still is paid out more from Social Security than they paid in.
- dragonwriter 8y ago> Even accounting for inflation and investment, the average worker still is paid out more from Social Security than they paid in. The source cited combines “Social Security and Medicare”, it doesn't (at least in the quoted excerpt) address SS separately. These are different programs supported by different Trust Funds funded by different taxes applicable to different income and with different dynamics driving costs.
- ams6110 8y agoBut the government is not investing that money for the later pay out. They spend it immediately and write IOUs.