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March 21, 2005
Side by Side
I received a fax from a fellow in Wisconsin who did the homework the White House and Republicans should be doing on Social Security reform. He did a side-by-side comparison...the benefit under the plan now in existence, compared to the benefit under the Ryan-Sununu proposal. My Wisconsin friend's scenario assumes a salary of $48,000 and a retirement age of 68. It also assumes interest on personal accounts at 6 percent, which he says is the worst performance to date of any 25 year period on Wall Street. Under current law, an 18 year old without a personal account would accumulate a retirement benefit of $101,000, amounting to $843 per month. Under Ryan-Sununu, with a personal account, that 18 year old would accumulate $939,000, or $5117 per month. In addition, the personal account can be inherited by family members. This is what people should understand about personal accounts. And this is what proponents of Social Security reform should be making crystal clear. Thank you to Robert A. Bartfeld, PhD.Posted by Larry Kudlow at March 21, 2005 6:26 PM | Print
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