Since releasing the newest version of the Social Security vs. Personal Retirement Accounts comparison calculator that takes the President’s proposal into account, a lot of people over the blogosphere are requesting a lot of the same good questions regarding lots of the details entering the assumptions behind the calculator. You will find aspects to Social Security regarding disability benefits and widow and orphan benefits that need to be incorporated into any reform.
Did you take these into consideration in your quest and development of your tool? Currently, the taxes that your employer and/or you (it’s “or” if you are self-employed) pay into Social Security are divided between two programs after administrative expenses are applied for. The question of how those getting survivor benefits (widows, orphans) is not just one I could really answer.
There are a great number of variables to take into consideration, such as how much the survivors would receive from the survivor’s insurance program when they might outright inherit the amount in their lost breadwinner’s PRA. How come SSI is not accounted for in the rate-of-return estimates? There is some common confusion about these details since the Social Security Administration (SSA) is accountable for controlling the SSI program. However, as observed before, no Social Security taxes other than those for the agency’s administrative expenses are applied toward these benefits.
For more information, see the Social Security booklet Understanding SSI. Are cost of living adjustments considered? No. Associated with that kind of modification is not essential for the intended purpose of comparing the equivalent investment results. Since cost of living changes are based on the rate of inflation, the associated percentage boosts you would see in your comparable investment earnings from Social Security would also be reflected in increased rates of come back from your PRA investment.
What this will mean, and I’ve revised the calculator to point this known reality, would be that the rate of come back you enter is the inflation-adjusted rate of come back you would foresee from your investment. How exactly does the calculator’s rate of come back for Social Security compare to the official projections? Relatively well, but with certain things you should take into account in evaluating how useful the calculator is to you. The calculator’s Social Security rate of come back is based on numbers released in 2000 (the details behind could developed the method used are for sale to your review).
I think we can be confident that the official projections are supported by a lot more data, including more recent data. Set alongside the offical projections from the SSA, the formulation I developed overstates the rates of come back in the years leading up to the middle-2020s, and understates the rates of come back in the full years following a mid-2020s.
- Particularly relevant where the property is used as your personal holiday accommodation
- Emergency Fund
- 07-20-2019, 04:33 AM
- Everything would be done on range
- 04-07-2019, 01:09 AM #111
What this means is that until the mid-2020s, the calculator will come back investment ideals for SS Only that are higher that what the state projections estimate. After the mid-2020s, the calculator shall come back beliefs that are lower that what the official projections predict. Does the calculator use realistic growth estimates?
That depends on you. It’s inherent in the worthiness you enter for your PRA’s rate of return. What investment options will be available? The President’s plan references the kind of investment options that exist through the government’s Thrift Savings Program (TSP) for federal employees. Historical performance data for these investment options are available from the TSP.