Get ready for a big shock!
Do your own calculations. Add up all the FICA and SS taxes taken out of your paycheck, or paid by you if you are self employed. Invested in a no risk investment @ 3-5 per cent over the average working life of 40 years, at age 66 you would have a whole lot more than $1 million.
SS is a Ponzi scheme, not in a “lock box” not invested. People pay in on the bottom to pay people on the top. Inevitably it collapses.
What is really sad is how many people truly believe that they have made “contributions” to a “fund” that is obligated to pay them a pension benefit at a certain age. In fact they have paid taxes to the government which create absolutely no property right for future pension benefit. No matter how much one has paid in FICA taxes one has no certain right to receive anything in return. And whatever one does receive in Social Security benefits is paid out of the fruit of another’s labor. Congress has the authority to terminate Social Security and never make another payment again. That’s not my opinion: that’s from the text of the Supreme Court’s ruling in Flemming vs Nestor. It’s also the language of the 1935 FICA: “Section 1104 ‘RESERVATION OF POWER’: The right to alter, amend, or repeal any provision of this Act is hereby reserved to the Congress.” Unfortunately, it’s impossible to reason with somebody who has been convinced that he’s going to get something for free or, in this case, in return for taxes paid. Like it or not, Social Security is a very popular welfare program.