Since World War II, average Old-Age and Survivors Insurance (OASI) contributions per worker have grown much faster than average hourly compensation. Large benefit expansions during the 1950s, 60s, and 70s meant generous rates of return for those born before 1930. However, current rules and demographics make it likely that workers born after 1945 will reap extremely low returns.
Suggested citation: “Social Security,” Federal Reserve Bank of Cleveland, Economic Trends, no. 96-04, pp. 13, 04.01.1996.