Paid for by Gore/Lieberman, Inc.
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ANOTHER "REAL" DIFFERENCE FOR "REAL" FAMILIES:
SAVING FOR RETIREMENT
Gore -
Lieberman
Bush -
Cheney
Difference
Total Retirement Benefit
Current Guaranteed Social Security Benefit
$22,000
$22,000
+$0
Cut in Guaranteed Benefit
$0
-$7,333
+$7,333
Annuity From Savings
$8,150
$2,900
+$5,250
Total Retirement Benefit
$30,150
$17,567
+$12,583
Note. Inflation-adjusted, after-tax dollars. Assumes a 5.3 percent real rate of return.
GORE-LIEBERMAN PLAN:
·
Social Security benefit guaranteed. Under the Gore-Lieberman plan this family would get a
guaranteed Social Security benefit, a projected $22,000 when they retire in twenty years.
·
Voluntary Retirement Savings Plus accounts. If this family saved $2,000 per year for 20 years,
then at the end of 20 years they would accumulate a retirement nest egg of $142,000 (in inflation-
adjusted dollars). This is enough to buy an inflation-protected annuity of $8,150.
BUSH-CHENEY PLAN:
·
Guaranteed Social Security benefit. Since the Bush-Cheney plan does not invest any more
money in Social Security, then it will need to make cuts in guaranteed benefits. For this couple the
cut would be 33 percent, with the cuts growing to 54 percent for younger couples.
16
As a result,
their guaranteed Social Security benefit would be reduced by $7,333.
·
Social Security individual accounts. If 2 percent of payroll were put into individual accounts,
after 20 years this family would accumulate $43,000 enough for an inflation-adjusted annuity of
$2,900.
16
Cite Century Foundation.
