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And any guarantee will involve only the return on contributions; it will not protect the worker against inflation.The second caveat is that a guarantee is only as good as the guarantor.
Forteza and Ourens (2012) show that the implicit rate of return on contributions paid to these programs is very low when individuals have short contribution histories.
"Curbing expenditure which is not fruitful and which is not seen to be a good return on contributions paid by tax payers will also make people a lot more willing to pay".
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Lurkers, who regularly log in to an online forum but rarely post [ 37], are a hard to reach group [ 38, 39], but form the majority (90%) of the Twitter audience and provide "return on contribution" for the tweeting minority [ 38].
Real Reform The existing Social Security system provides paltry returns on contributions.
Nest says the reason the overall investment return on total contributions across the period is 7% or 9%, as opposed to the higher figures quoted (left), is because the contributions are added in over time, rather than all having been put in on 1 October, 2012.
Return on gross contributions: 7%.
You should not expect a generous return on your contributions.
Social Security can only provide a meager return on its contributions, since it is funded entirely by those currently working.
Whereas current pensioners are withdrawing far more than they paid into the system, today's workers will receive negligible or even negative rates of return on their contributions.
In fact, many illegal immigrants do pay taxes into the Social Security system, but never see a return on their contributions.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com