Table 3. Monthly Annuity as Percent of Social Security Benefit -- Single Annuity-- UNISEX
Retire at 65 -- PRELIMINARY 1/
Contribution Rate: 8% for $1, 3% for Maximum Earnings
Percent of Present Law OASDI Retirement Benefit Provided with Annuity from Specified Percent Individual Account (IA)
Contributions Starting in 2003, or Age 21, if Later, Through Age 64
Annual Administrative Expenses (as Percent of Assets)
     During Accumulation = 0.1%
     During Annuitization = 0.3%
Year
Attained
Age 65
DeMint Contribution Rates Based on Formula
Percent of Assets Invested in Equities 2/
60.0%
88.6%
31.4%
0.0%
Real Net Yield on Assets During Accumulation
5.0
6.0
4.0
2.9
Annuity Real Return Rate -- Net of IA Administrative Expenses
4.8
5.8
3.8
2.7

Scaled Low Earner
2012
10.9
12.4
9.5
8.1
2022
33.6
40.7
27.6
22.1
2032
67.5
87.1
52.1
39.2
2042
107.0
147.0
77.9
55.1
2052
121.6
171.1
86.6
59.8

Scaled Medium Earner
2012
12.7
14.4
11.1
9.5
2022
37.9
45.8
31.2
25.0
2032
75.6
97.5
58.5
44.0
2042
121.4
167.0
88.4
62.5
2052
139.7
197.1
99.2
68.4

Scaled High Earner
2012
12.8
14.5
11.2
9.6
2022
36.1
43.6
29.8
24.0
2032
71.4
92.0
55.4
41.8
2042
117.2
161.4
85.2
60.2
2052
137.4
194.7
97.3
66.8

Steady Maximum Earner
2012
11.2
12.7
9.8
8.4
2022
29.3
35.3
24.2
19.6
2032
57.0
73.3
44.3
33.5
2042
95.7
132.0
69.5
49.1
2052
120.3
172.4
84.3
57.3
Note: "Self Annuitization" presumes that retirees would continue to invest their assets in the same manner as before retirement, and make monthly withdrawals that, on average, roughly match the pattern of a CPI-indexed life annuity.

Earnings Scale Factors #2: using cross section data of all fully insured for 1985-94
1/ Values may be somewhat overstated due to use of general population mortality for annuity calculations.
2/ The balance of each portfolio is assumed to be invested in Long-Term U.S. Government Bonds.

Based on the intermediate assumptions of the 2001 Trustees Report
Office of the Actuary
Social Security Administration
December 16, 2001

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