Ida May Fuller
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- For the co-founder of the Sigma Kappa sorority, see Ida Fuller.
| Ida May Fuller | |
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| Born | 1874 Brattleboro, Vermont, US |
| Died | 1975 |
Ida May Fuller ([September 6, 1874 - 1975) was the first U.S. citizen to be the recipient of a monthly benefit Social Security check on January 31, 1940, a check for $22.54. Fuller lived in Brattleboro, Vermont and retired in 1939 and had paid just three years of payroll taxes. Nevertheless, she received monthly Social Security checks until her death in 1975 at age 100. By the time of her death, Fuller had collected $22,888.92 from Social Security monthly benefits, even though she had contributed only $24.75 to the system. This is roughly an annualized return of 22%.
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The annualized return is closer to 42%.
Firstly, the midpoint, not the endpoint (which would yield the 22%), of the 35-year payout period should be used in the estimate, because the $22,888.92 was paid out gradually over this period.
Secondly, $49.50, not $24.75, was contributed, considering the employer's matching contribution, which is generally considered, in the long run, to reduce the employee's pay by an equal amount, since an employer has a predetermined amount he is willing to spend retaining an employee.
$49.50 x 1.42^17.5 = $22,890
