|
|
| PRIVATIZING SOCIAL SECURITY CALCULATOR |
Highlights on the President's proposal.
|
- Under the President's plan, personal retirement accounts would start gradually. It will not affect individuals 55 or older.
- Personal retirement accounts would be phased in. To ease the transition to a personal retirement account system, participation would be phased in according to the age of the worker. In the first year of implementation, workers currently between age 40 and 54 (born 1950 through 1965 inclusive) would have the option of establishing personal retirement accounts. In the second year, workers currently between age 26 and 54 (born 1950 through 1978 inclusive) would be given the option and by the end of the third year, all workers born in 1950 or later who want to participate in personal retirement accounts would be able to do so.
- Yearly contribution limits would be raised over time, eventually permitting all workers to set aside 4 % points of their payroll taxes in their accounts.
- Annual contributions to personal retirement accounts initially would be capped, at $1,000 per year in 2009. The cap would rise gradually over time, growing $100 per year, plus growth in average wages.
Note: Our calculator does not account for the phase in process included in the President's plan. Our calculator assumes the plan has been fully phased. The phase in process will vary based on your salary.
- Personal retirement accounts offer younger workers the opportunity to build a "nest egg" for retirement that the government cannot take away.
- Personal retirement accounts could be passed on to children and grandchildren. The money in these accounts would be available for retirement expenses. Any unused portion could be passed on to loved ones.
- Personal retirement accounts would be voluntary. At any time, a worker could "opt in" by making a one-time election to put a portion of his or her payroll taxes into a personal retirement account.
- Those workers who do not elect to create a personal retirement account would continue to draw benefits from the traditional Social Security system, reformed to be permanently sustainable.
- Personal retirement accounts would be protected from sudden market swings on the eve of retirement.
- Hidden Wall Street fees would not eat up personal retirement accounts. Personal retirement accounts would be low-cost.
- Personal retirement accounts would not be emptied out all at once, but rather paid out over time, as an addition to traditional Social Security benefits. Any unused portion of the account could be passed on to loved ones.
See the rest of the points on the President's plan
Read the details of the plan at GOP.com
|
|
|
