"Rate of return" is the overall percentage increase, usually on an annual basis, in the value of an asset. Rate-of-return calculations frequently are expressed in real terms (that is, adjusted for inflation).

The Social Security rates of return on this attachment represent only the retirement portion (not the disability portion) of Social Security. These returns compare the Social Security retirement taxes paid over an individual's lifetime with the total amount of retirement benefits that he or she could expect to receive.

For example, a married couple that had an annualized rate of return of 1.25% would receive more than a $1.00 for every $1.00 they paid into the system. If they paid $474,263 in lifetime taxes, their benefits from Social Security would be $666,730 with a 1.25% annual return on their Social Security investment.   More