Albert Einstein said the most powerful force in the universe is compound interest. That is why a modest savings program can lead to dramatic and surprising amounts of money and security.

The average wage earner makes about $25,000 per year. Let's set a target of a "retirement income" of $25,000 per year for all income earners, as an example. However, this method of calculating a retirement savings and annuity works for any income level.

The correct assumptions lead to this: "The savings method results in the person at age 65 receiving an annuity of 100% of the average annual income between age 23 and 65."

Inflation is ignored for simplicity. Inflation also leads to the average income rising. The result is a life-time monthly income, starting at age 65, of 100% of the income before age 65.

Let's assume the person has constant income between age 22 and 65. At a 6% return, a constant savings rate of 5% of income over 43 years provides an ending account valued at $253,472. That amount would insure and guarantee you $25,000 per year for the rest of your life. At age 65, the retirement income goal is achieved with money to spare.

A person who lived to be 105 would receive a monthly check of over $2,080 for 40 years. Over 40 years, you would be paid a total of $1 Million. That is One Million Dollars because you saved 5 cents of every dollar of income before age 65.

When was the last time a politician proposed such an easy, automatic way for you and others to achieve financial security? It works for everyone. It's FAIR for everyone. It can be promoted by The Hundred (YOUR Hundred) at any level of government. Just remember, promises made by the corporatist class or the government class do not count. Only pay-as-we-go cash counts. Insist on it.

There are numerous savings calculators available on the web. You can play around with the assumptions and see it in action.  A Calculator.