OASDI Financial Effects of the "Social Security Guarantee Plus Plan"

Table A3. Accumulated Assets in Individual Account (IA) at Retirement
Retire at 65 Contribution Rate: 8% for $1, 3% for Maximum Earnings Accumulated IA at Specified 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%
Year Attained Age 65	DeMint Contribution Rates Based on Formula
	Percent of Assets Invested in Equities ^1/
	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
	(Current dollars)				(Constant 2000 dollars)
Scaled Low Earner
2012	15,474	16,234	14,750	13,996	10,932	11,469	10,421	9,888
2022	71,518	79,704	64,256	57,230	36,519	40,699	32,811	29,223
2032	214,619	254,431	181,695	152,050	79,208	93,901	67,057	56,116
2042	527,589	664,849	421,603	332,585	140,732	177,346	112,461	88,716
2052	928,102	1,196,777	726,033	560,705	178,933	230,732	139,975	108,101
Scaled Medium Earner
2012	29,780	31,229	28,401	26,965	21,039	22,063	20,065	19,050
2022	133,016	148,050	119,671	106,750	67,921	75,598	61,107	54,509
2032	397,029	470,282	336,448	281,899	146,529	173,564	124,171	104,038
2042	988,545	1,246,887	789,362	622,329	263,690	332,602	210,559	166,003
2052	1,759,957	2,275,286	1,373,535	1,058,363	339,309	438,662	264,809	204,046
Scaled High Earner
2012	39,610	41,507	37,803	35,921	27,984	29,324	26,707	25,378
2022	167,596	186,142	151,118	135,142	85,579	95,049	77,165	69,007
2032	495,781	586,423	420,817	353,309	182,974	216,427	155,308	130,393
2042	1,260,727	1,592,595	1,005,468	791,944	336,293	424,818	268,204	211,248
2052	2,287,946	2,969,820	1,778,971	1,365,850	441,103	572,564	342,975	263,328
Steady Maximum Earner
2012	41,332	43,252	39,503	37,596	29,201	30,557	27,909	26,561
2022	164,606	182,348	148,825	133,509	84,052	93,112	75,994	68,173
2032	479,843	566,363	408,269	343,786	177,092	209,024	150,677	126,879
2042	1,247,260	1,577,806	993,720	782,240	332,701	420,873	265,070	208,659
2052	2,425,784	3,183,372	1,866,858	1,418,702	467,677	613,736	359,919	273,518
Average Annual Earnings level in 2000 is assumed at: Low 15,156 Average 33,680 (=SSA Average Wage Index) High 53,888			Ultimate Assumed Growth Rates and Real Yields 4.30 percent annual increase in Average Earnings 3.30 percent annual CPI increase 3.00 percent annual real yield on Larger Than U.S. Government Bonds 3.50 percent annual real yield on Corporate Bonds 6.50 percent annual real yield on Equities 0.10 percent annual Administrative Expense 3.398 percent equity premium over LT Govt Bonds
Earnings Scale Factors #2: using cross section data of all fully insured for 1985-94
^1/ The balance of each portfolio is assumed to be invested in Larger Than U.S. Government Bonds. Based on the intermediate assumptions of the 2001 Trustees Report						Office of the Actuary Social Security Administration December 16, 2001