Do you think that private social security accounts (i.e. you own it) would give you more at retirement than the current system?
I did some number crunching and came up with these numbers.
Fund 401(k) for 45 years
Annual Income of $ 20,000.00- increasing 2% per year
Beginning Balance= $ .0
Contribute 7.65% of Salary -Invested Twice Monthly
Your Employer will match 100% up to 7.65% of salary - Annually
(hint: the above is the same as current system deducts from everyone's earnings which means that you'd feel nothing in your pocket book to make this happen.)
Annual Interest Rate = 7% - Compounded Annually
ending balance at age 65 = 1,154,983.81
yearly interest earned at 3.3% = 38,748.55
that's 3,229 per month.
Currently, the SS system gives us around 1,079 per month or a total of 12,948 per year.
Which way would be better for everyone?
2007-10-18
06:50:56
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6 answers
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asked by
tantamount_to_anarchy
2
in
Politics