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41 sats \ 3 replies \ @kr 1 Oct 2023 \ on: Interesting but Broken Analysis of Social Security as an Interest Bearing Loan bitcoin
“A single person who made the average wage (about $47,800 in 2015 dollars) and retired in 2015 would have paid about $272,000 into Social Security and would receive about $294,000 in lifetime benefits.” source $294,000 is more than they contributed by about 8.1%. That’s effectively an 8.1% interest rate.
Isn’t this 8.1% over the course of a lifetime of earnings?
If so, the effective interest rate is nearly 0.
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533 sats \ 0 replies \ @siggy47 1 Oct 2023
Exactly. It's not 8% per year
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465 sats \ 1 reply \ @supertestnet OP 1 Oct 2023
Wow! If the effective interest rate is nearly 0 then this is an awesome deal for the government and a terrible deal for workers. You'd be way better off buying bonds instead of paying into Social Security. Even better: opt out and buy bitcoin.
Funny how the government can't even afford Social Security payouts when the effective interest rate they have to pay on them (when treated like loans) is only ~0%.
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0 sats \ 0 replies \ @kr 1 Oct 2023
yeah i think this is the case. i'm not sure how it works in the US, but i believe all Canadians pay a portion of their salary towards a similar retirement vehicle whether they want to or not
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