From Emily Brandon's Planning To Retire Blog at U.S. News & World Report:
The Social Security Administration is reaching out to 20 and 30-somethings. Beginning this month, workers between the ages of 25 and 35 will receive a new insert with their Social Security statement [known as a Personal Earnings and Benefit Estimate Statment or PEBES at Social Security]. “This two-sided supplement provides younger workers with information about ways to save and invest, and also shows how saving even a little bit can make a big difference over time,” says Jason Fichtner, acting deputy commissioner of the Social Security Administration.
Of course the information assumes that savings will get a rate of return of 5% -- something that is out of the question. It overstates real savings growth to make it look like private accounts are the answer to retirement needs. Pushing individual savings is good, but not when it creates unrealistic expectations.
ReplyDeleteIt seems to be part of the privatization mentality since it is being done in the same breath as a statement that the Social Security Trust Fund will be depleted and young people should only expect 78% of their scheduled benefit.
Take a look. The insert is at http://www.ba.ssa.gov/mystatement/Insert25+.pdf
Looks like a carry-over from the bad old Bush days. The fact that Astrue is publishing this and bragging about it is quite irritating. I hope his new boss in OMB takes note of this at his next performance discussion.
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