Table 4. Monthly Annuity as Percent of Social Security Benefit -- Joint & 2/3 Survivor Annuity
|
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)
Accumulated IA at Spec Percent of OASDI Taxable Earnings
Contributions Starting in 2003, or Age 21, if Later, Through Age 64
Annual Administrative Expenses (as Percent of Assets)
During Accumulation = 0.1%
During Annuitization = 0.3%
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|
Year
Attained
Age 65
|
DeMint Contribution Rates Based on Formula
|
|
|
Percent of Assets Invested in Equities 2/
|
|
60.0%
|
88.6%
|
31.4%
|
0.0%
|
|
Real Net Yield on Assets During Accumulation
|
|
5.0
|
6.0
|
4.0
|
2.9
|
5.0
|
6.0
|
4.0
|
2.9
|
|
Annuity Real Return Rate -- Net of IA Administrative Expenses
|
|
4.8
|
5.8
|
3.8
|
2.7
|
4.8
|
5.8
|
3.8
|
2.7
|
(2-earner couple)
|
(1-earner couple)
|
|
Scaled Low Earner
|
|
2012
|
10.2
|
11.6
|
8.9
|
7.5
|
6.8
|
7.8
|
5.9
|
5.1
|
|
2022
|
31.5
|
38.3
|
25.8
|
20.6
|
21.2
|
25.8
|
17.3
|
13.8
|
|
2032
|
63.3
|
82.1
|
48.7
|
36.4
|
42.8
|
55.4
|
32.9
|
24.6
|
|
2042
|
100.6
|
138.7
|
72.9
|
51.3
|
67.9
|
93.7
|
49.3
|
34.7
|
|
2052
|
114.5
|
161.8
|
81.2
|
55.8
|
77.3
|
109.3
|
54.8
|
37.7
|
|
Scaled Medium Earner
|
|
2012
|
11.9
|
13.6
|
10.3
|
8.8
|
8.0
|
9.1
|
6.9
|
5.9
|
|
2022
|
35.5
|
43.1
|
29.1
|
23.2
|
23.9
|
29.0
|
19.6
|
15.6
|
|
2032
|
71.0
|
91.9
|
54.7
|
40.9
|
47.9
|
62.1
|
36.9
|
27.6
|
|
2042
|
114.2
|
157.6
|
82.7
|
58.2
|
77.1
|
106.5
|
55.9
|
39.3
|
|
2052
|
131.5
|
186.3
|
93.0
|
63.8
|
88.8
|
125.8
|
62.8
|
43.1
|
|
Scaled High Earner
|
|
2012
|
12.0
|
13.6
|
10.4
|
8.9
|
8.0
|
9.2
|
7.0
|
6.0
|
|
2022
|
33.8
|
41.0
|
27.8
|
22.3
|
22.8
|
27.6
|
18.7
|
15.0
|
|
2032
|
67.1
|
86.7
|
51.8
|
38.8
|
45.3
|
58.6
|
34.9
|
26.2
|
|
2042
|
110.2
|
152.4
|
79.8
|
56.0
|
74.4
|
102.9
|
53.9
|
37.8
|
|
2052
|
129.4
|
184.1
|
91.2
|
62.3
|
87.4
|
124.3
|
61.6
|
42.1
|
|
Steady Maximum Earner
|
|
2012
|
10.5
|
12.0
|
9.2
|
7.8
|
7.0
|
8.0
|
6.1
|
5.2
|
|
2022
|
27.5
|
33.2
|
22.6
|
18.2
|
18.5
|
22.3
|
15.2
|
12.2
|
|
2032
|
53.5
|
69.1
|
41.4
|
31.2
|
36.1
|
46.6
|
28.0
|
21.0
|
|
2042
|
90.0
|
124.7
|
65.1
|
45.7
|
60.8
|
84.2
|
44.0
|
30.9
|
|
2052
|
113.3
|
162.9
|
79.0
|
53.4
|
76.5
|
110.0
|
53.4
|
36.1
|
|
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 1985-94
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|
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 2001 Trustees Report
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Office of the Actuary
Social Security Administration
December 16, 2001
|