CATEGORY: INDIVIDUAL ACCOUNT CHANGES
PROPOSAL: Allow workers to voluntarily contribute an additional 2% of pay (up to the tax max) to an individual account
Start date: 2016  End date: not applicable  Proposed by: Social Security Advisory Board

Projected effects on beneficiaries in 2030

Table 1. Individual benefit changes, 2030: Voluntary Individual Add-on Accounts vs. Scheduled
POPULATION: current law beneficiaries aged 60+
Characteristic All Beneficiaries Affected Beneficiaries
Median Percent Change Percent With Median Percent Change Percent With
Lower Benefits Higher Benefits Lower Benefits Higher Benefits
Total 0% 0% 41% 0% 100%
Sex
Female 0% 0% 38% 0% 100%
Male 0% 0% 45% 0% 100%
Ethnicity/Race
Hispanic 0% 0% 48% 0% 100%
White 0% 0% 40% 0% 100%
Black 0% 0% 42% 0% 100%
Other 0% 0% 45% 0% 100%
Country of Birth
U.S. 0% 0% 40% 0% 100%
Foreign 0% 0% 48% 0% 100%
Age
60-69 0% 72% 0% 100%
70-79 0% 0% 40% 0% 100%
80-89 0% 0% 0% 0% 100%
90+ 0% 0% 0% . . . . . .
Marital Status
Married 0% 0% 44% 0% 100%
Divorced 0% 0% 43% 0% 100%
Widowed 0% 0% 28% 0% 100%
Never Married 0% 0% 49% 0% 100%
Education
Graduate 0% 0% 41% 0% 100%
Bachelor 0% 0% 47% 0% 100%
Associate 0% 0% 42% 0% 100%
High School 0% 0% 39% 0% 100%
Less than 12 Yrs 0% 0% 37% 0% 100%
Official Poverty
Above poverty 0% 0% 42% 0% 100%
In poverty 0% 0% 30% 0% 100%
Household Income Quintile
$175,526+ 0% 0% 46% 0% 100%
$97,521 - $175,526 0% 0% 47% 0% 100%
$57,224 - $97,521 0% 0% 44% 0% 100%
$30,478 - $57,224 0% 0% 39% 0% 100%
$0-$30,478 0% 0% 31% 0% 100%
Current Law Benefit Type
Retired worker 0% 50% 0% 100%
Widow(er) 0% 0% 24% 0% 100%
Spouse 0% 0% 22% 0% 100%
Disabled worker 0% 0% 0% . . . . . .
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/09/2015 Ref #: SSAB0714v1
Note: . . . = not applicable.
Providing these estimates does not imply SSA support for the proposal, nor is SSA responsible for any interpretations of these estimates.
Table 2. Household income changes, 2030: Voluntary Individual Add-on Accounts vs. Scheduled
POPULATION: current law beneficiaries aged 60+
Characteristic All Beneficiaries Affected Beneficiaries
Median Percent Change Percent With Median Percent Change Percent With
Lower Income Higher Income Lower Income Higher Income
Total 0% 0% 21% 0% 0% 46%
Sex
Female 0% 0% 20% 0% 0% 47%
Male 0% 0% 22% 0% 0% 45%
Ethnicity/Race
Hispanic 0% 0% 27% 0% 0% 49%
White 0% 0% 20% 0% 0% 46%
Black 0% 0% 23% 0% 50%
Other 0% 0% 21% 0% 0% 42%
Country of Birth
U.S. 0% 0% 20% 0% 0% 46%
Foreign 0% 0% 25% 0% 0% 46%
Age
60-69 0% 0% 43% 0% 56%
70-79 0% 0% 15% 0% 0% 33%
80-89 0% 0% 1% 0% 0% 32%
90+ 0% 0% 0% . . . . . .
Marital Status
Married 0% 0% 21% 0% 0% 40%
Divorced 0% 0% 24% 0% 55%
Widowed 0% 0% 16% 0% 55%
Never Married 0% 0% 29% 0% 58%
Education
Graduate 0% 0% 17% 0% 0% 38%
Bachelor 0% 0% 23% 0% 0% 46%
Associate 0% 0% 22% 0% 0% 48%
High School 0% 0% 20% 0% 0% 47%
Less than 12 Yrs 0% 0% 21% 0% 0% 49%
Official Poverty
Above poverty 0% 0% 21% 0% 0% 45%
In poverty 0% 1% 23% 1% 73%
Household Income Quintile
$175,526+ 0% 0% 6% 0% 0% 12%
$97,521 - $175,526 0% 0% 19% 0% 0% 37%
$57,224 - $97,521 0% 0% 25% 0% 0% 50%
$30,478 - $57,224 0% 0% 28% 0% 66%
$0-$30,478 0% 0% 27% 0% 81%
Current Law Benefit Type
Retired worker 0% 0% 24% 0% 0% 46%
Widow(er) 0% 0% 13% 0% 52%
Spouse 0% 0% 19% 0% 0% 48%
Disabled worker 0% 0% 5% . . . . . .
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/09/2015 Ref #: SSAB0714v1
Note: . . . = not applicable.
Providing these estimates does not imply SSA support for the proposal, nor is SSA responsible for any interpretations of these estimates.
Table 3. Poverty, 2030: Voluntary Individual Add-on Accounts vs. Scheduled
POPULATION: current law beneficiaries aged 60+
Characteristic Poverty Rate Population Change (thousands)
Scheduled Option Change
Total 4.9% 4.8% -0.1% -97
Sex
Female 5.3% 5.2% -0.2% -64
Male 4.3% 4.2% -0.1% -33
Ethnicity/Race
Hispanic 8.8% 8.6% -0.2% -16
White 3.5% 3.4% -0.1% -67
Black 9.0% 8.8% -0.2% -11
Other 7.7% 7.6% -0.1% -2
Country of Birth
U.S. 4.2% 4.1% -0.1% -66
Foreign 8.8% 8.5% -0.3% -31
Age
60-69 5.7% 5.5% -0.2% -61
70-79 4.9% 4.8% -0.1% -36
80-89 3.8% 3.8% 0.0% 0
90+ 2.5% 2.5% 0.0% 0
Marital Status
Married 1.9% 1.9% 0.0% -2
Divorced 8.3% 8.0% -0.3% -35
Widowed 5.8% 5.5% -0.3% -35
Never Married 17.0% 16.5% -0.4% -24
Education
Graduate 1.4% 1.3% -0.1% -9
Bachelor 2.2% 2.1% -0.1% -12
Associate 3.6% 3.5% -0.1% -8
High School 6.1% 6.0% -0.1% -34
Less than 12 Yrs 13.9% 13.4% -0.5% -32
Official Poverty
Above poverty 0.0% 0.0% 0.0%
In poverty 100.0% 97.1% -2.9% -104
Household Income Quintile
$175,526+ 0.1% 0.1% 0.0% 0
$97,521 - $175,526 0.1% 0.1% 0.0% 0
$57,224 - $97,521 0.3% 0.3% 0.0% -2
$30,478 - $57,224 0.8% 0.8% 0.0% -3
$0-$30,478 23.0% 22.4% -0.6% -91
Current Law Benefit Type
Retired worker 4.6% 4.4% -0.1% -69
Widow(er) 5.0% 4.7% -0.2% -26
Spouse 5.5% 5.5% 0.0% -2
Disabled worker 8.5% 8.5% 0.0% 0
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/09/2015 Ref #: SSAB0714v1
Providing these estimates does not imply SSA support for the proposal, nor is SSA responsible for any interpretations of these estimates.
Table 4. Beneficiary characteristics, 2030: Voluntary Individual Add-on Accounts vs. Scheduled
POPULATION: current law beneficiaries aged 60+
Characteristic All beneficiaries Affected beneficiaries Beneficiaries with lower benefits Beneficiaries with higher benefits
Number (thousands) Percent Number (thousands) Percent Number (thousands) Percent Number (thousands) Percent
Total 73,810 100.0 30,529 100.0 . . . . . . 30,529 100.0
Sex
Female 39,993 54.2 15,339 50.2 . . . . . . 15,339 50.2
Male 33,817 45.8 15,190 49.8 . . . . . . 15,190 49.8
Ethnicity/Race
Hispanic 7,865 10.7 3,790 12.4 . . . . . . 3,790 12.4
White 54,004 73.2 21,560 70.6 . . . . . . 21,560 70.6
Black 7,559 10.2 3,200 10.5 . . . . . . 3,200 10.5
Other 4,382 5.9 1,979 6.5 . . . . . . 1,979 6.5
Country of Birth
U.S. 62,372 84.5 24,989 81.9 . . . . . . 24,989 81.9
Foreign 11,438 15.5 5,540 18.1 . . . . . . 5,540 18.1
Age
60-69 24,505 33.2 17,748 58.1 . . . . . . 17,748 58.1
70-79 31,533 42.7 12,714 41.6 . . . . . . 12,714 41.6
80-89 14,979 20.3 66 0.2 . . . . . . 66 0.2
90+ 2,793 3.8 . . . . . . . . . . . . . . . . . .
Marital Status
Married 41,785 56.6 18,259 59.8 . . . . . . 18,259 59.8
Divorced 13,632 18.5 5,897 19.3 . . . . . . 5,897 19.3
Widowed 12,828 17.4 3,650 12.0 . . . . . . 3,650 12.0
Never Married 5,566 7.5 2,723 8.9 . . . . . . 2,723 8.9
Education
Graduate 8,636 11.7 3,509 11.5 . . . . . . 3,509 11.5
Bachelor 13,936 18.9 6,537 21.4 . . . . . . 6,537 21.4
Associate 16,752 22.7 7,030 23.0 . . . . . . 7,030 23.0
High School 28,256 38.3 11,117 36.4 . . . . . . 11,117 36.4
Less than 12 Yrs 6,230 8.4 2,335 7.6 . . . . . . 2,335 7.6
Official Poverty
Above poverty 70,205 95.1 29,453 96.5 . . . . . . 29,453 96.5
In poverty 3,604 4.9 1,076 3.5 . . . . . . 1,076 3.5
Household Income Quintile
$175,526+ 14,762 20.0 6,792 22.2 . . . . . . 6,792 22.2
$97,521 - $175,526 14,762 20.0 6,948 22.8 . . . . . . 6,948 22.8
$57,224 - $97,521 14,763 20.0 6,536 21.4 . . . . . . 6,536 21.4
$30,478 - $57,224 14,759 20.0 5,704 18.7 . . . . . . 5,704 18.7
$0-$30,478 14,763 20.0 4,549 14.9 . . . . . . 4,549 14.9
Current Law Benefit Type
Retired worker 51,869 70.3 26,187 85.8 . . . . . . 26,187 85.8
Widow(er) 12,154 16.5 2,902 9.5 . . . . . . 2,902 9.5
Spouse 6,571 8.9 1,439 4.7 . . . . . . 1,439 4.7
Disabled worker 3,215 4.4 . . . . . . . . . . . . . . . . . .
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/09/2015 Ref #: SSAB0714v1
Note: . . . = not applicable.
Providing these estimates does not imply SSA support for the proposal, nor is SSA responsible for any interpretations of these estimates.
Table 5. Beneficiary Status, 2030: Voluntary Individual Add-on Accounts vs. Scheduled (in thousands)
POPULATION: current law or option beneficiaries aged 60+
Characteristic Current Law Beneficiaries Changes in beneficiary status under proposed option Policy Option Beneficiaries
Added Removed Net Change
Total 73,810 0 74,874
Sex
Female 39,993 0 40,623
Male 33,817 0 34,251
Ethnicity/Race
Hispanic 7,865 0 8,044
White 54,004 0 54,493
Black 7,559 0 7,735
Other 4,382 0 4,602
Country of Birth
U.S. 62,372 0 62,886
Foreign 11,438 0 11,988
Age
60-69 24,505 0 25,283
70-79 31,533 0 31,817
80-89 14,979 0 14,981
90+ 2,793 0 0 2,793
Marital Status
Married 41,785 0 42,332
Divorced 13,632 0 13,778
Widowed 12,828 0 12,979
Never Married 5,566 0 5,785
Education
Graduate 8,636 0 8,738
Bachelor 13,936 0 14,129
Associate 16,752 0 16,864
High School 28,256 0 28,608
Less than 12 Yrs 6,230 0 6,535
Official Poverty
Above poverty 70,205 0 70,776
In poverty 3,604 0 4,099
Household Income Quintile
$175,526+ 14,762 0 14,937
$97,521 - $175,526 14,762 0 14,927
$57,224 - $97,521 14,763 0 14,866
$30,478 - $57,224 14,759 0 14,843
$0-$30,478 14,763 0 15,302
Current Law Benefit Type
Retired worker 51,869 0 0 51,869
Widow(er) 12,154 0 0 12,154
Spouse 6,571 0 0 6,571
Disabled worker 3,215 0 0 3,215
None 0 0 1,065
Source: SSA/Office of Retirement Policy, using MINT 7 Run: 03/09/2015 Ref #: SSAB0714v1
Providing these estimates does not imply SSA support for the proposal, nor is SSA responsible for any interpretations of these estimates.