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April 26, 2005
Tierney--If Only Social Security Had Invested in the Stock Market
John Tierney's column today shows why he's rapidly moving up my list of favorite writers. He decides to compare Social Security pensions with a friend of his from Chile, where workers' retirement funds have invested in the local stock market since the 1980s.
Here's what his options would look like if his funds had been invested like those of his friend:
(1) Retire in 10 years, at age 62, with an annual pension of $55,000. That would be more than triple the $18,000 I can expect from Social Security at that age.
(2) Retire at age 65 with an annual pension of $70,000. That would be almost triple the $25,000 pension promised by Social Security starting a year later, at age 66.
(3)Retire at age 65 with an annual pension of $53,000 and a one-time cash payment of $223,000.
But it's a risky scheme!
Posted by pat at April 26, 2005 11:51 AM
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» Chris, this is for you from Northshore Politics
If you have read my posts in the past, you know that my brother and I don't exactly see eye to eye on many issues, one of which is Social Security. He likes to use other countries that have private pension accounts as examples of why we shouldn't pri... [Read More]
Tracked on April 26, 2005 02:50 PM
Comments
But we're not smart enough to invest our own money, Pat! That's what millionaires Nancy Pelosi and Ted Kennedy keep saying...
Posted by: Pam M. at April 26, 2005 01:12 PM