First, you didn’t contribute $540,000 on day one. Those contributions occurred over decades, so any investment comparison needs to account for when the money was actually contributed. Second, and more importantly, a 7% average stock market return does NOT mean a 7% dividend yield. You’re confusing total investment returns with dividend income. Your hypothetical $2.4 million portfolio would not automatically pay you $168,000 annually in dividends. You would have to sell investments to reach that amount. Third, Social Security isn’t simply a retirement investment account. It’s also disability insurance, survivor insurance, and inflation-adjusted lifetime retirement income. Those benefits have real economic value that your calculation completely ignores.