re: In just a few years, the average retiree will be receiving 37% more in SS than he paid in

quote:

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Please explain to me how a system can be self funding if it not only pays out to each individual what they paid in, but also pays out the hypothetical market return that individuals lost out on.

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That "system" would be an IRA.

Want another irony?
SS payouts are taxed. Ponder that for a moment. If they weren't taxed, and payouts were reduced accordingly, we could significantly extend solvency. But once again, none of this is about the recipient "beneficiary" or even program solvency. It is a money grab. With our deficits, Uncle Sam needs a bigger borrow.

So the Feds will continue to tax SS with taxes which don't return to the SSTF. They go to the general fund just like the original SS contributions did, with nothing but an IOU in the SSTF to show for it.