I would ABSOLUTELY take the deal to opt out of SS.Syntyr wrote: ↑Thu Apr 16, 2020 1:58 pmGreat post. For me I'll sum it up this way. I am 54 right now. Today I would sign an agreement that if the Fed would allow me to drop out of SS program and they would stop taking SS money out of my paycheck I would forgo any SS amount they owe me. I still think I would come out ahead.Rafe wrote: ↑Wed Apr 15, 2020 1:48 pm
And I don't know about anyone else, but I have a feeling that if I were given that $413,600 up front, with some really conservative investing I could have probably grown the nest egg over the intervening 47 years. At a measly 0.5% average annual interest compounded yearly for 47 years, the total would be $522,860. The federal government probably didn't make a dime on those paid-in funds, probably lost money. But that isn't the worker's fault.
Oddly enough, colleges and universities (among a few select other institutions) were allowed to opt-out of SS when it was enacted. I worked at a local Community College for a while. They had elected to use private 401k (not pensions) for all employees. It was nice to see those taxes not coming out of my check.