No. of Recommendations: 8
At 2% growth I would have had $580k, at 5% I would have had $1.1M and at 8%...$2.2M. That's a nice retirement at less money outlaid by the feds (as I would have dropped off the retirement rolls as far as they're concerned).
But now, with me nearing my mid-50s? No deal. They can pay me according to the current SS schedule (around $40k).
What are you complaining about, then? The NPV of a $40K per year annuity is about $700K, give or take.
It is a retirement system. The reason that it's structured as a pension, rather than as a self-directed fund, is because they don't want to get stuck holding the bag for people who take a lot of risks and end up with too little money. The whole point is to prevent people from not having enough to avoid abject poverty in their old age. That means modest - but certain - returns.
