| Retire at 65 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 Start in 2005, or Age 21, if Later, Through Age 64Annual Administrative Expenses (as Percent of Assets)        During Accumulation = 0.25%         During Annuitization = 0.25% |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
||
||
||
||
||
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | (Current Dollars) | (Constant 2003 Dollars) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Scaled Low Earner |
| 2014                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 15,700 | 16,471 | 14,967 | 14,086 | 11,452 | 12,014 | 10,918 | 10,275 |
| 2024                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 70,633 | 78,703 | 63,481 | 55,525 | 38,338 | 42,718 | 34,456 | 30,137 |
| 2034                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 206,774 | 245,064 | 175,133 | 142,563 | 83,511 | 98,975 | 70,732 | 57,578 |
| 2044                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 495,989 | 624,634 | 396,703 | 301,829 | 149,055 | 187,716 | 119,218 | 90,706 |
| 2054                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 851,126 | 1,096,003 | 666,915 | 495,633 | 190,325 | 245,084 | 149,133 | 110,831 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Scaled Medium Earner |
| 2014                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 30,227 | 31,696 | 28,830 | 27,149 | 22,049 | 23,120 | 21,030 | 19,804 |
| 2024                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 131,513 | 146,351 | 118,354 | 103,705 | 71,382 | 79,436 | 64,239 | 56,288 |
| 2034                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 382,952 | 453,474 | 324,674 | 264,679 | 154,665 | 183,147 | 131,128 | 106,897 |
| 2044                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 930,233 | 1,172,556 | 743,484 | 565,325 | 279,555 | 352,378 | 223,433 | 169,892 |
| 2054                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 1,615,392 | 2,085,471 | 1,262,823 | 936,102 | 361,227 | 466,345 | 282,387 | 209,327 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Scaled High Earner |
| 2014                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 40,226 | 42,151 | 38,395 | 36,190 | 29,343 | 30,747 | 28,007 | 26,398 |
| 2024                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 166,001 | 184,340 | 149,719 | 131,571 | 90,101 | 100,055 | 81,264 | 71,413 |
| 2034                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 479,118 | 566,525 | 406,880 | 332,498 | 193,504 | 228,806 | 164,329 | 134,288 |
| 2044                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 1,188,214 | 1,499,910 | 948,564 | 720,540 | 357,083 | 450,755 | 285,064 | 216,537 |
| 2054                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2,102,882 | 2,725,686 | 1,637,896 | 1,209,231 | 470,238 | 609,507 | 366,260 | 270,403 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Steady Maximum Earner |
| 2014                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 41,989 | 43,938 | 40,134 | 37,897 | 30,629 | 32,050 | 29,275 | 27,643 |
| 2024                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 163,240 | 180,804 | 147,631 | 130,211 | 88,603 | 98,136 | 80,131 | 70,675 |
| 2034                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 464,182 | 547,675 | 395,155 | 324,045 | 187,471 | 221,193 | 159,593 | 130,874 |
| 2044                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 1,177,089 | 1,488,006 | 938,710 | 712,603 | 353,740 | 447,177 | 282,102 | 214,152 |
| 2054                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2,135,122 | 2,778,601 | 1,656,802 | 1,218,133 | 477,447 | 621,339 | 370,487 | 272,394 |
| Average Annual Earnings level in 2003is assumed at:      Low 15,629Average 34,731 (=SSA Average Wage Index)      High 55,569                                                                                                                                                                                                                                                                              | Ultimate Assumed Growth Rates and Real Yields  4.10 percent annual increase in Average Earnings  3.00 percent annual CPI increase  3.00 percent annual real yield on Larger Than U.S. Government Bonds  3.50 percent annual real yield on Corporate Bonds  6.50 percent annual real yield on Equities  0.25 percent annual Administrative Expense3.398 percent equity premium over Larger Than U.S. Government Bonds |
| **Earnings Scale Factors #2: using cross section data of all fully insured for 1990-99**Based on the intermediate assumptions of the 2003 Trustees Report                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Office of the Chief ActuarySocial Security AdministrationSeptember 9, 2003 |

Return to memorandumReturn to list of memos