Hey I wonder. I'm glad I never had a chance to opt out. The return that I get from what I paid into SS are fabulous. I got all my money back pretty quickly and it's still coming. Don't see how any private plan could have improved on this return. BTW It's not the power of compound interest, it's the power of inflation that got my money back so quickly.
Dear ex-snook,
"BTW It's not the power of compound interest, it's the power of inflation that got my money back so quickly."
It's also that you spent a large part of your working career making FICA contributions at 2%, 3%, 5% of income.
Thus, you just put in a tinier fraction of your income for the benefits you receive.
On the other hand, I get to pay 12.4% (and folks who think they're paying 6.2% don't know how employers think about this stuff), and have for years, and will for another 22 years before I'm eligible for full benefits (and I won't be eligible for those until I'm 67).
Even invested in high quality corporate bonds, 12.4% of income over the course of a 45-year career will yield a heck of a lot more than Social Security.
And, when you die, the principle will pass to your heirs, not your Uncle Sam.
sitetest
Yes, pyramid schemes can work great if you get in early enough. We're well past that point now.