NCPA's New Online Benefits Calculator
May 23, 2000
At a Washington news conference Monday, the National Center for Policy Analysis (NCPA) unveiled a new online benefits calculator that compares Social Security benefits with those of a fully privatized retirement system.
"This calculator is far and away the most sophisticated and accurate calculator that is available," said John Goodman, NCPA president.
The calculator at http://www.mysocialsecurity.org dramatizes the difference between the 2.1 percent return projected for Social Security and the 4.8 percent projected for a portfolio of stocks and bonds.
The NCPA's calculator constructs projections from 750,000 workers contained in 15 years of U.S. Census data.
Some examples created by the Dallas Morning News using the NCPA's calculator:
- A 35-year old waitress currently earning $25,000 can expect monthly Social Security benefits of $1,148 at retirement; if she were allowed to invest those dollars in real assets, she could have a private pension of $4,397.
- A 35-year old male construction worker earning $35,000 under the current system can only expect to receive $1,417 monthly Social Security benefits compared to $7,044 if he had invested privately.
And a 35-year old male financial executive earning $125,000 a year under the current system can only expect to receive $2,045 a month under the current system compared to $12,461 if he had invested in equities.
Source: Robert Dodge, "Group Touts Privatized Social Security with Calculator...," Dallas Morning News, May 23, 2000.
Browse more articles on Tax and Spending Issues