Social Security internal rate of return, medium earner aged 21 in 2018 with average life expectancy at retirement (retirement benefits only)

Medium Earner
Based on Current Contribution Rate 5.7%
Based on Contribution Rate after Eliminating Shortfall 5.0%
Based on Full Cost Rate 4.5%

Source: Author's calculations based onĀ  inflation, average wage, and cohort life expectancy projections in single-year tables underlying the 2017 Social Security Trustees Report; and the "medium earner" in Michael Clingman and Kyle Burkhalter, "Scaled Factors for Hypothetical Earnings Examples Under the 2017 TrusteesĀ  Report Assumptions," Social Security Administration Actuarial Note, July 2017. Assumes retirement at normal retirement age (67).

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