Bush proposes $8,000 a year to retire on (in current dollars) for everyone (no matter what you're income level is) by the year 2100:

From Kevin Drum:

Basically, low income earners ($16K/year) currently get about 49% of their income replaced by Social Security. Under the Pozen plan, this would stay the same. Medium income workers ($36K/year), however, would see their replacement rate fall from 36% to 23% by the year 2100. The replacement rate for higher income workers ($58K/year) would fall to 14% and for maximum income workers ($90K/year) to 9%.

Do the math:

$16k * 0.49 = $7.84k
$36k * 0.23 = $8.28k
$58k * 0.14 = $8.12k
$90k * 0.09 = $8.10k

These are in current (2005) dollars. How many people can retire on that amount today?

To have a decent retirement under Bush's plan, you'd better do really well with investments. Either that, or depend on charity.

posted by Quiddity at 4/29/2005 10:17:00 AM