Retirement Math
The stock market crash may have been a knockout blow to the idea of adding personal savings accounts to Social Security, which Pres Bush saw as the hallmark of his second term. Under the Bush plan, only workers under age 55 as of 2005 would have been eligible for accounts, so no current retirees wou...
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| Published in: | Forbes 2009-04, Vol.183 (7), p.22 |
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| Main Author: | |
| Format: | Magazinearticle |
| Language: | eng |
| Subjects: | |
| Online Access: | Get full text |
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| Summary: | The stock market crash may have been a knockout blow to the idea of adding personal savings accounts to Social Security, which Pres Bush saw as the hallmark of his second term. Under the Bush plan, only workers under age 55 as of 2005 would have been eligible for accounts, so no current retirees would have held accounts. Nevertheless, the author ran a simulation: workers would retire today but begin accounts at different ages. For the worker who started an account at age 62, then retired only three years later, the total benefits would have declined by 0.1%. Only a small loss because under the life-cycle portfolio, which would have been automatic under the Bush proposal, workers nearing retirement would hold only around 15% of their assets in stock. |
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| ISSN: | 0015-6914 2609-1445 |