I created an Excel spreadsheet to see what all the money the government collected from me and my employer over the years for SS & Med would look like today had I invested it in something like an IRA. It's set up so all you have to do is insert the amounts from the report that comes from SSA. Then you put in the year you'll start collecting and it gives you back investment results. I used interest rates based on the Consumer Price Index for interest each year from 1937 - 2010. I ended up with about $300K from SS and $80K from Medicare. (see screen shot) The average interest rate over my contribution years came out to around 4.5%. Anyone with mediocre investing skills should be able to match that. And with that I can buy a 20 year annuity that will pay me about $300 more per month than SS is willing to.
So I'm trying to figure out how our government managed to turn SS into fund that can't sustain itself. Give me a hundred million retirement accounts and I'll bet I could invest it so one day no one would ever have to pay into it again.
If anyone wants to run their numbers. PM me your email and I'll send you the files.