Social Security vs. Private Retirement Accounts

Prof. Antony Davies analyzes Social Security in the United States through the lens of a typical 22 year old American. Assuming that Social Security is completely solvent, the expected return on investment (ROI) of Social Security is far lower than the expected ROI of a private account. Further, if an individual could hypothetically opt out of Social Security payments and invest the funds entirely in Treasury Bills, the Treasury bills would even yield a greater ROI.

See more videos by Prof. Antony Davies. 


  1. Lukas Koube

    yup, Social Security is billed as something to help people in old age. however, in practice it is a way for the government to levy huge rates of taxes on people’s retirement accounts. its about $100,000 that the american government takes from each person through social security…and that doesnt even count the fact that SS is a net transfer of wealth from the poor to the rich.

  2. GLucas

    I have heard this before and agree but  how do we change this when the government requires us to invest in Social Security.

  3. Anonymous

    Please listen to this man. I am 65 years old. I am newly on Medicare and Social Security. I did not have a choice about either. I would much prefer if I could get my money back and make my own decisions. I don’t know if I will break even with what I and my employers contributed or not but I can tell you that the Social Security Administration is incompetent and extremely difficult to work with. If you color outside the lines they will punish you forever.

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