From The Foundation for Economic Education
The Social Security Administration's website now allows its “customers” to enter income numbers over a career and pull out a precise benefit level. So it's relatively easy today for anyone to contrast private investments with Social Security benefit levels with an unprecedented level of precision. (This author has run the numbers several times before in the past few decadesusing the SSA's PIA calculator application.)
While it has long been known that middle class and wealthy people do not profit by “investing” their money in Social Security compared with a private retirement fund, the impact of Social Security upon a worker trapped in a minimum wage job throughout his career has been left uncalculated – until now. Thus, the following question can be answered authoritatively:
Is it possible for a minimum wage worker to do better putting his money into Social Security than if he were allowed to invest his money in a private fund earning interest at the same rate as the S&P 500?
And the answer is this: No, it's not possible. In every conceivable scenario, the private fund pays more than Social Security to the minimum wage worker.
Read the complete article from FEE at the link below.