Thursday, January 27, 2005

Apples and Oranges

I'd be more than happy for one of the truly lovely people at Cato to correct me, but I'm almost positive that this calculator is presenting Social Security benefits in real terms and expected benefits in private accounts in nominal terms.

If I'm wrong, I'm happy to correct. If I'm right.... hack-chooooooo!

...perhaps one of Matt's good friends at Cato can clear this up...

... oh, okay, I think I see what the issue is. It never occurred to me that the 4% annual salary growth could be real annual salary growth. So, if you graduate college at age 22 and earn $38,000 on your first job your final annual income on retirement will be about $210 grand.

Yea, that's typical for the population...snark

UPDATE: In csae it was clear (I thought it was), I was wrong and they are in fact comparing everything in real dollars.