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Subject:  Re: Social Security Reform Date:  2/17/2005  4:15 PM
Author:  2old4bs Number:  44692 of 98869

From what source are you obtaining the reduction numbers you are using.

Well, I wasn't making them up ;-)

I fully understand that there are no firm numbers on the table. I was using numbers that were published in a Washington Post article on January 4th:

The change would save trillions of dollars in scheduled expenditures and solve Social Security's long-term deficit, but at a cost. According to the Social Security Administration's chief actuary, a middle-class worker retiring in 2022 would see guaranteed benefits cut by 9.9 percent. By 2042, average monthly benefits for middle- and high-income workers would fall by more than a quarter. A retiree in 2075 would receive 54 percent of the benefit now promised.

Included in that article is a chart showing the decrease in benefits due to price indexing for the medium earner retiree at various retirement dates. The chart source was the SS Administration's Chief Actuary, according to the article.

Since I'm (hopefully) retiring in 2017, not 2022, I used a 9% reduction.

I admit that I was a little off in the reduction for 20 somethings, the 46% reduction for the 2075 retiree would be for someone now 5 years old, I guess ;-)

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