Skip to main content
Non-financial boards have been closed.

Non-financial boards have been closed but will continue to be accessible in read-only form. If you're disappointed, we understand. Thank you for being an active participant in this community. We have more community features in development that we look forward to sharing soon. | The Motley Fool Community
Message Font: Serif | Sans-Serif
No. of Recommendations: 2

In my own case my very rough estimates are that I'll pay out >$2 (in pre-2000 dollars) for every dollar (in 2028 dollars) according to the current payout formula. After accounting for inflation the actual payout is much MUCH worse.

GH has already mentioned this, but I am going to say it again: SS includes things like a disability insurance and a life insurance which pays to widows and orphans.
Especially disability insurance is VERY costly if bought on the private market. It's been a while since I inquired about premiums (in Germany, in this case), but you should expect to pay over 10% in premiums of the insurance you expect to get in case you are rendered disabled. That is, a $1500 disability pension would likely cost in the neighborhood of $150-200 a month - if you can even get it, many people will not be able to get such a policy on the free market. Factor THAT into your calculation and I bet it will start to look a lot different indeed.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.