The Texas Model for Fixing Social Security
Texas Gov. and Republican presidential hopeful Rick Perry is pointing to three Texas counties that decades ago opted out of Social Security by creating personal retirement accounts.
Those who retire under the Texas counties’ Alternate Plan do much better than those on Social Security.
- A lower-middle income worker making about $26,000 at retirement would get about $1,007 a month under Social Security, but $1,826 under the Alternate Plan.
- A middle-income worker making $51,200 would get about $1,540 monthly from Social Security, but $3,600 from the banking model.
- And a high-income worker who maxed out on his Social Security contribution every year would receive about $2,500 a month from Social Security versus $5,000 to $6,000 a month from the Alternate Plan.
Under Obama’s “fair share” doctrine, people who have done better with personal retirement accounts should be penalized to help shore up the unsustainable Social Security system.
The NCPA has published on this before. It’s an excellent example of what might have been.
“a worker in the Alternate Plan owns his account, so the entire account belongs to his estate.”…that is a nice feature
I’m not a huge Perry fan, but the idea of owning your own retirement is great.
Someone who doesn’t make it to Social Security age loses all the benefits they’ve paid in. Under this plan, their family or surviving spouse can still use the funds.