Maybe, probably not. Here’s the thing
in theory what Bob says here is true, but practically it’s a joke simply because there are so many
along the way.
If Bob actually followed a ridged saving scheduled over the entire 40 years, the big if
If Bob picked the right investments
If the timing was always right
If Bob didn’t incur early disability or death or had to retire early
If Bob was prudent in using his money and didn’t run out in retirement
If Bob had sufficient assets to provide for survivor benefits
If Bob was comfortable living in retirement managing his investments and not having a guaranteed income stream.
If, If, If … If you had no illness or injury after age 65, you could save by not paying the Medicare tax too.
Bob in Michigan wondered why Social Security is not structured more like a private, interest-bearing saving account. “This is the greatest extortion of all time – you pay into it, they take your money for 35 years and your employer also has to match that,” he said. “If I was able to take that money and put it in a bank account, and collect interest for 40 years, I would have a very substantial amount of money, and I could retire simply off that.”
Bob added this painful fact: his brother died last year at 61, and “never collected a dime” in benefits, and neither will his family. “If he was able to save (all the tax contributions he made to Social Security), he would have it for my sister-in-law and two sons. I calculated it at over $1.5 million that the government stole from him.”