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. gab912



  2. taschrant

    Man, young people are getting screwed something fierce.

  3. 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.

  4. GLucas

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

  5. zachvega

    Oh, the coercion. 

  6. Pfliger_MPLS

    The question becomes educating the masses to this in order to change public policy. 

  7. 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.

  8. Justin Jones

    Change the people in government! Vote the right people in.

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