How does the calculators rate of return for Social Security compare to the official projections?
Relatively well, but with certain things you should take into account in assessing how useful the calculator is to you. The calculator’s Social Security rate of return is based on numbers published in 2000 (the details behind how I developed the formula used are available for your review). I think we can be pretty sure that the official projections are backed by much more data, including more recent data. Compared to the offical projections from the SSA, the formula I developed overstates the rates of return in the years leading up to the mid-2020s, and understates the rates of return in the years following the mid-2020s. What this means is that up until the mid-2020s, the calculator will return investment values for SS Only that are higher that what the official projections estimate. After the mid-2020s, the calculator will return values that are lower that what the official projections predict. I am presently working on a new version of the tool that will allow you to choose between
