My wife received a document in the mail the other day from the Social Security Administration. The document enclosed says:
"In 2016 we will begin paying more in benefits than we collect in taxes. Without changes, by 2037 the Social Security Trust Fund will be exhausted and there will be enough money to pay only about 76 cents for each dollar of schedule benefits. We need to resolve these issues soon to make sure Social Security continues to provide a foundation of protection for future generations."
I have heard elsewhere (I think from Charles Murray) that the average 70 year old can expect to receive about $75,000 more in benefits than they have payed in to the Social Security system. The average 25 year old can expect to pay in $320,000 more than they will receive in benefits.
The document mentioned above also advises "young workers" to begin saving and investing in other ways to hedge against the money the can expect to not receive via the Social Security Fund.
I called the Social Security office and asked the kind woman there why I would want to continue to pay in to a fund that I can expect a projected loss of 24% on. She said "I don't know, well, because it's law."
I'm not sure that's good enough anymore.