re: Social Security - Help me understand better

quote:

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For those who are very educated in this. how do you get more SS payout than you put in?

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Think about that question for a moment.
If you invest $1000 in an account at 5% interest, 50yrs later it totals ~$60,000.
How do you get more payout ($60,000) than you put in ($1000)?

For individuals retiring this year, and assuming they live 25yrs (90y/o), their SS payout will be roughly 3/4ths what a US Treasury account held over the same period would total.

If one dies at 80y/o, SS payout would be roughly 1/2 the value of a personal US Treasury account.

If one dies prior to any SS payout, the value would obviously be 0% that of a US Treasury account (which could be passed on as inheritance).

In general SS ROI <3%. Inflation has averaged ~3.8%.