Source: Foundation for Economic Education
by Athan Clark
“A worker earning $60,000 a year sends 12.4% of his wages to Social Security: $7,440 annually, every year of his working life. Half is deducted from his paycheck; the other half is paid by his employer, which economists broadly agree comes out of the worker’s wages anyway, though he never sees it. There is no deposit slip or account with his name on it, but this is money that would otherwise be his. That same $7,440 a year, invested for 40 years at an inflation-adjusted 7% — roughly the long-run historical performance of US equities — would accumulate to about $1.5 million. Social Security, by contrast, offers most younger workers an implicit inflation-adjusted return in the range of 1% to 2%, and lower still for higher earners.” (06/12/26)
https://fee.org/articles/the-hidden-price-of-social-security/