The vast majority have no idea. They also don't understand risk and the current cultural climate is, "the Government will take care of me." As long as that's the message that's being preached nothing will get better.

That said In order to receive $12,000 a year in interest at 2%, you must have $600,000 in principal. That doesn't include taxes, etc. Right now my $140k Townhouse makes $1,000/ month before expenses. For that same $600k I could buy 4 townhouses and make $48,000 before taxes and expenses. Right now I write an 8% check to a management company and never lift a finger. All expenses are about $2,000 a year. in 31 years do you think I'm still only going to be charging $1,000 a month rent? In addition to the excess income I'll still have an asset likely valued around $200k or more.

My current plan is to have enough passive income from other sources that I don't really even need to touch principal. I know eventually I'll have to but I don't count on SS being there for me. I wish I could elect to pay something like $3k/year and then opt out of SS benefits at retirement. I don't want it and I don't plan on it being there for me anyways.