Lets assume I retire tomorrow so I am no longer contributing into the system even though I'm well short of retirement age. I'm fully 40 quarters vested. Under the best case scenario and I wait until age 70 to start benefits and lived to 90, I would get back less than 58 cents of every dollar I have contributed over my producing life. I will have to live to 104 to break even.
Stand by while I consult the magic 8 ball. "Not Optimistic"
But that's only half the story. My employers have matched my contributions plus a little bit I don't understand. That means given the total contributions by me and on my behalf, I will net ~28 cents for every dollar over the same time period. I'll have to live to 141YO before I break even (again assuming the most optimistic scenario where I stop contributing today and start collection at age 70)
Re-consult magic 8 ball: NFW!!!
I've said for years, I would walk away from my all my SSA contributions todate if they would let me opt out. My calculations show the contributions I will likely make more contributions in the next ten years that will exceed any withdrawals. Another way of looking at this, writing off my past thirty+ years contributions + my employer's contributions. Put my sole contributions into an account with my name at 0% interest, I still come out ahead on day one! Add in the employer contribution and I come out way ahead!
Now FedGov wants to sell me into MyRA? See the negative rate of return shown above! You have proven you can't manage my money. Why would I trust you with my next dollar let alone everything
I weep for the SCSon's generation.