Senator Reid's SS Calculator Debunked

Senator Reid introduced an online Social Security calculator which you can access here… However, I would suggest you read this information from The Heritage Foundation…

Sen. Reid, Sen. Charles Schumer (D-NY), and other foes of personal retirement accounts today posted an on-line calculator developed by the far-left Center for Budget Policy and Priorities. Those planning to use this calculator should keep in mind a few of the unsupportable assumptions built into it:

It assumes personal accounts will deliver CBO’s “risk-adjusted” rate of return of 3% not counting administrative costs—less than half of the average return of 7% on equities delivered over the past 75 years. For its “expected” analysis, however, CBO assumes a rate of return of 4.9%, even after accounting for administration costs.[1] This calculator assumes that the average investor will be able to equal, at best, no more than the return on U.S. Treasury Bonds.

It assumes all workers will start collecting full benefits at age 65—even though the age at which one qualifies for full Social Security benefits will reach 67 by 2022. This incorrect assumption allows the calculator to overstate projected Social Security benefits by as much as two years and underestimate personal account earnings by the same margin. [Read the rest here]