@NotOpie in relation to my last response to you about not calling them "entitlements", I did the following analysis last night based on my Social Security Statement.
Assumptions:
1) The SS taxes I paid and my employer paid since the start of my first full time job goes into my own account vs. being sent to the gov't. Call it a 401Ks. This is 12.4% of income up to the income limit.
2) 5% investment return, but for simplicity sake, only compounded annually.
3) Do not take money out until 67. Although my contributions have ceased, the account will still get 5% return. I'm still quite a few years from that age so it will continue to grow for many years.
4) At age 67, take the amount in the account and put into an annuity using a 3% return and running for 20 years (which is 10 years beyond the average life expectancy of a male in the US). I wouldn't take out an annuity, but it's easier for this analysis.
5) Compare that to my Social Security statement where at age 67, I take social securing and my wife takes it based off of mine at 50%.
The analysis? The annuity would be paying me 33% more than Social Security in year 1.
I realize it's more complicated because of taxes on investment earnings and taxes on Social Security, but it exemplifies that these aren't "entitlements". The fact that the gov't is inept at handling money is the real issue, not the people receiving the benefits for money we all paid into the system.
