DC PLAN VS. SOCIAL SECURITY (COMBINED HOUSEHOLD)
DC Plan Beats Social Security
Based on your inputs, the DC alternative produces 1.53x more in present value over your lifetime — a difference of approximately $609.1K.
Tap to explore full projection →
Investment Strategy
Primary Taxpayer
⚠ This worker is already past retirement age. Adjust birth year or retirement age.
Some College profile implies ~$27.9K career average from $54.7K current income.
Spouse
⚠ This worker is already past retirement age. Adjust birth year or retirement age.
Some College profile implies ~$15.4K career average from $36K current income.
How this simulator works
This tool takes the payroll taxes you would pay into Social Security over your career and compares them against investing those same dollars in a defined-contribution account. The Social Security side follows the SSA's published formulas — wage-indexed top-35 earnings, PIA bend points, and the Full Retirement Age schedule. The investment side compounds those same payroll contributions under a portfolio strategy you choose, then withdraws them in retirement under a rule you select.
The headline number is a present-value ratio: the defined-contribution portfolio value divided by the lifetime value of the Social Security benefit, both discounted to today's dollars. A ratio above 1.0 means the investment account delivered more; below 1.0 means Social Security delivered more. The Comparisons tab shows the full breakdown, and the Monte Carlo tab runs 1,000 return sequences to show the range of outcomes.
Every assumption is editable — return rates, inflation, wage growth, withdrawal rules, life expectancy, and payroll-tax treatment are all on the Assumptions tab, and nothing is hidden in the engine. For the full methodology, see How the Model Works.