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Politics : The Citizens Manifesto -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (84)	6/14/2005 5:01:14 PM
From: RetiredNow	Read Replies (2) \| Respond to of 492

OK. I reran the numbers. Here's what I got. Assumptions ------------- Retirement Age 67 Death Age 87 After Inflation Return 3% Annual Earnings $17,000 Annual SS Savings Rate 12.4% Annual SS Savings $2,108 SSA estimates using: ssa.gov Age Mine SSA 22 $1,111 $590 25 $982 $590 30 $791 $590 35 $627 $588 40 $485 $582 45 $364 $574 50 $259 $600 55 $169 $570 60 $91 $526 65 $24 $496 67 $- $467 My numbers are assuming that you forfeited all SS benefits under the current system in order to switch to a private account system. So under that scenario, it would be worthwhile for anyone 35 or younger to do it. However, if they don't forfeit any of the current SS benefits, then it makes sense for everyone to switch to my private account system. I'm not sure how to calculate the amount that everyone not retired is owed under the current system to determine how much net of SS assets, we'd have to raise for cover transition costs. But I recommend we just give everyone under 35 the option of forgoing all benefits in order to switch to a fully private system today. And see what happens. It's a clear win for them and a win for the over 35, because all of those forfeitures will go to shore up the gov't obligation to them. So it's a win win.