Social Security & Retirement

 

Social Security is funded by employers and the employee, with each contributing 6.2% of their wages into the SS Trust Fund each year.  The Trust Fund currently holds $2.9 trillion.  The Trust Fund earns the market rate of interest on its investments.  The Trust Fund is managed by the government, Congress and the President, but the government puts no tax dollars into the fund.

The average Social Security monthly payment is right around $1,500 which amounts to $3,000 for a couple and hardly enough to pay monthly bills, on average, in the USA.

Consequently, it is up to the individual to supplement their potential Social Security by have other retirement accounts and investments such as real estate and/or stocks and bonds.

The average cost of living in the USA currently is right around $6,500/month which means the average couple is going to need twice what they receive in Social Security.  The average individual is going to need three times as much.

It does not seem fair but that is the way the game is played these days.

On average, one can receive $400/month per $100,000 when invested in a mutual fund providing the principal is never withdrawn.  This means that the average couple is going to need to have $800,000 invested in a mutual fund when they decide to retire.

Full retirement age currently is 67.