Benefits of Individual Social Security Accounts Are, Well, Individual

August 2005
Journal of Financial Planning;Aug2005, Vol. 18 Issue 9, p20
Academic Journal
This article reports on a 2005 study conducted by the Employee Benefit Research Institute in the U.S. which shows that the benefits of a system of individual accounts would vary significantly depending on the worker's retirement date, earnings and investment choices. The study compared private accounts with options that: maintain benefits under current law; cut back benefits when the trust fund is exhausted; and gradually reduce current-law benefits. The study examined possible benefits for those not born until 2015, low-income 20-year-olds, and higher-income 50-year-olds. Those not yet born would do better under the current system than under individual accounts. Lower-income workers are likely to do better than higher-income workers under individual accounts, but there would be variance among comparable individual beneficiaries, particularly depending on investment choices. The study includes a chart showing 42 examples of possible Social Security benefit levels for the four policy options. It also details the percentage of a worker's retirement income that Social Security would replace under the different policy options.


Related Articles

  • Less Money Invites Extreme Allocating. Cornfield, Jill // Plan Advisor News;2013, p23 

    The article focuse on the report of U.S.-based nonpartisan organization Employee Benefit Research Institute (EBRI) on the allocation of individual retirement accounts (IRA). The report of the EBRI shows that those IRA owners aged below 25 had the highest percentage of equities. The report also...

  • Overcoming the sins of the past.  // Finance Week;2/9/2004, p58 

    Reports that a new generation of guaranteed retirement funds have emerged in South Africa that overcome the drawbacks of traditional guaranteed funds. Long lock-in periods; Potential market value adjustments on termination of the investment; Removal of nonvesting bonuses; Momentum Institutional...

  • Editor's Page. Rejda, George E. // Benefits Quarterly;1986 First Quarter, Vol. 2 Issue 1, p1 

    Comments on articles published in the March 1, 1986 issue of "Benefits Quarterly." Examination individual retirement accounts in the viewpoint of supplementary retirement benefit for retired workers; Analysis of factors that influence investment decision of corporations with respect to the...

  • MONEY MANAGEMENT Q&As.  // Medical Economics;2/20/2004, Vol. 81 Issue 4, p89 

    Responds to questions regarding money management in the U.S. Tax-free benefits for disabled employees; Benefits to investors of stock buybakcs; Contribution to foreign charities; Purchase of vacation home using individual retirement account funds.

  • Tips for IPS. KANE, MICHAEL M. // Employee Benefit News;Jul2009, Vol. 23 Issue 9, p38 

    The article offers tips for employees in evaluating 401(k) plans with an Investment Policy Statement (IPS). The author recommends 401(k) plans with IPS that contains elements, such as roles and responsibilities for fiduciaries and nonfiduciaries supporting portfolio. Investment style and risk...

  • Retirement Savings and Lump Sum Distributions. Andrews, Emily S. // Benefits Quarterly;1991 Second Quarter, Vol. 7 Issue 2, p47 

    Preretirement lump sum distributions are becoming prevalent. These distributions are frequently not saved until retirement. This trend has prompted some policy maker to consider whether or not to restrict their use. The author presents an analysis of data from the Current Population Survey...

  • Planning for Retirement.  // Securities Industry News;Spring2004 Supplement, Vol. 16, p14 

    Assesses the impact on brokerages and clearing firms of proposed lifetime savings accounts (LSA), retirement savings accounts (RSA) and employee retirement savings accounts under the 2004 budget of the government of U.S. President George W. Bush. Analysis of the costs of opening and maintaining...

  • Investment Commentary. Marosi, James // Grand Rapids Business Journal;6/14/2004, Vol. 22 Issue 24, p43 

    Provides information on the savings option for employees created by the U.S. government called the individual retirement accounts (IRA). Concept of the IRA; History of the IRA; Types of IRA.

  • The Roth 401(k): Because it's not nice to tax skimpy nest eggs. White, Jane; Meigs, Rick // Employee Benefit News;Nov2006, Vol. 20 Issue 14, p58 

    The article discusses the Roth 401(k) option made available to employers wherein the employee pays the taxes on the income contributed while they are working and earning in exchange for tax-free withdrawals at retirement. However, according to a survey made by Deloitte Consulting, only 12...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics