Table 5 -- Monthly Annuity as Percent of Social Security Benefit -- Single, UNISEX
Retire at 65 -- PRELIMINARY 1
Contribution Rate: 8% for $1, 3% for Maximum Earnings
Percent of Present Law OASDI Retirement Benefit Provided with Annuity from Specified Percent Individual Account (IA)
Contributions Start in 2005, or Age 21, if Later, Through Age 64

Annual Administrative Expenses (as Percent of Assets)
        During Accumulation = 0.25%
        During Annuitization = 0.25%
Year
Attained
Age 65
DeMint Contribution Rates Based on Formula
Percent of Assets Invested in Equities 2
65.0%
93.6%
36.4%
0.0%
Real Net Yield on Assets During Accumulation
5.025
6.025
4.025
2.75
Annuity Real Return Rate -- Net of IA Administrative Expenses
5.025
6.025
4.025
2.75
Scaled Low Earner
2014
11.0
12.5
9.6
8.0
2024
34.6
41.9
28.5
22.0
2034
67.5
87.1
52.3
37.5
2044
106.3
145.9
77.5
51.9
2054
119.9
168.5
85.5
55.8
Scaled Medium Earner
2014
12.9
14.6
11.3
9.4
2024
39.1
47.3
32.2
25.0
2034
75.9
97.8
58.8
42.3
2044
120.9
166.2
88.2
59.0
2054
138.1
194.6
98.3
64.0
Scaled High Earner
2014
12.9
14.7
11.3
9.4
2024
37.2
44.9
30.7
23.9
2034
71.6
92.2
55.6
40.0
2044
116.5
160.3
84.8
56.7
2054
135.6
191.9
96.2
62.3
Steady Maximum Earner
2014
11.2
12.7
9.8
8.2
2024
30.1
36.2
24.9
19.4
2034
56.8
73.0
44.2
32.0
2044
94.7
130.4
68.8
46.0
2054
113.0
160.5
79.9
51.5
Note: "Self Annuitization" presumes that retirees would continue to invest their assets in the same manner as before retirement, and make monthly withdrawals that, on average, roughly match the pattern of a CPI-indexed life annuity.

Earnings Scale Factors #2: using cross section data of all fully insured for 1990-99
 
1 Values may be somewhat overstated due to use of general population mortality for annuity calculations.
2 The balance of each portfolio is assumed to be invested in Long-Term U.S. Government Bonds.

Based on the intermediate assumptions of the 2003 Trustees Report
 
Office of the Chief Actuary
Social Security Administration
September 9, 2003

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