This graph shows that the average man and woman (average defined in the study as average income over their working lives and living to the average life expectancy) who start receiving benefits in 2010 get over 3 times more in benefits than they pay in to the system! Of importance, the study accounts for inflation by calculating all past taxes and future payments in 2010 dollars to provide an accurate comparison.
If the notion that Medicare recipients are simply "getting back what they paid in" is false then where is the money coming from? Simply, the excess received is being borrowed from younger generations and the cost is more than we can bear.
We are constantly reminded of the government's inability to manage a budget under the arbitrary debt ceiling (raised 80 times since 1940) and that the national "on budget" debt is over $14T. The debt conversation all too often omits the "off budget" debt that includes underfunded liabilities to Social Security and Medicare which is about $110T according to a Forbes article; totaling more than $900K per working American.
Have not studied what you posted. Sounds credible.
But, my point is: Do not blame the “boomers” for this mess. It started when the Social Security System was originated. No one was “asked” if they wished to participate.
The government will simply refuse to deliver what they promised, because they cannot.
That analysis is useless, unless you use constant dollars. $100 was worth a lot more in 1972 than it is in 2012.
You should really do a discounted cash flow analysis using interest rates as they were during the pay-in years. That would show that it is close to 1:1, not 3:1.