The idea that giving up ~40% of your work in hopes that the government takes care of you is ridiculous (Social Security is a government ran ponzi scheme).

The average person makes 65k in the US

They would pay 10k in federal income tax (15.4%)

They would pay 4k in social security (6.2%)

They would pay 2.6k in state income tax (~4%)

So out of the 65k, they get to keep 48.4k

Business would pay 4k in social security for you (6.2%)

With: Get paid 65k, walk home with 48.4k

Without: Get paid 69k, walk home with 69k.

69k - 48.4k = 20.2k

20.2k ÷ 69k = .29

Without federal/state/SS tax, the average person would have 30% more

Sales tax is ~5%

48.4k × 5% = 2.4k

If they used all their money to buy stuff, their actual purchasing power would be. They'd only have 46k to spend.

69k - 46k = 23k

23k ÷ 69k = .33

Average person gets to spend about 66% of their "actual pay"

I'd call that ~40%

65k - 48.4k = 16.6k

Let's assume 20 years old and retire at 67

47 years of working

S&P500 has had an average annual rate of return of 10% since being created in 1957.

Let's say 5% APR because 10% is realistic, but it's not guaranteed.

Extra 16.6k a year is about 1.4k per month.

If someone invested 1.4k per month for 47 years at 5%, interest compounded annually.

They would have 3 million in a retirement fund. (10% is 14.6m)

A 30-year mortgage is currently 7.5%. You could put the 1.4k a month into that and basically get a 7.5% guaranteed return.

Making 65k, walking home with 48.4k. Having to spend an extra 2.4k If you want to buy anything with the 48.4k because you really can only buy 46k worth of stuff. While giving up a 3m-14.6m retirement fund.

That's a "small portion"?

This isn't even counting health insurance. You make 65k the government isn't helping you out.

This is also not counting property tax.

You're giving up 1.4k a month so the government can give you 1.4k a month (hopefully) when you turn 67.

The government uses your potential 3m-14.6m for its own needs in the meantime