Not even CLOSE to being accurate. The problem is that government is trying to fund it like a Ponzi scheme. SS will ONLY work if the money is invested and interest is gained over time. Let’s go back to the basics:
If you invested $1,000 into SS in 1960, with no interest, that investment is now worth $151.83 in purchasing power. To keep up with JUST inflation, you would need an interest rate of 3.81%, making that $1,000 worth $6,471.83, or the same purchasing power of that $1,000 in 1970. When you say they’re “upside down”, it’s a flaw within the system because they’re SPENDING that cash and not investing it to allow it to build. It’s not a retirement plan if there is no interest being paid because it doesn’t even keep up with inflation.
All that being said, this just shows the ineptness of government. The current rate is 15.3%. How in the ever living HELL can people still say “It’s not designed to be your sole source of retirement” considering funding that amount into a personal account would net you at LEAST 85% of income replacement if you buy a private policy?
Take my average ROI on rental properties of 9.8%. If I invested 15.3% of my income (assuming a start of $30,000 gross income per year) and netted 50% of that return over 50 years, I would have $1.5MM. If inflation averaged 2% per year, that would be the equivalent of $551K in savings today, you would have just over 100% income replacement at year 50, assuming a 5% ROI.