Different Approaches for Dealing with Social Security
- (pp. 55-66)
AbstractThis paper discusses the report of the 1994 Quadrennial Advisory Council on Social Security, of which the author was chair. The system is out of long-term actuarial balance and, as a maturing defined benefit pay-as-you-go system, is giving younger cohorts ever lower returns on their payroll contributions. The council suggested three approaches--each of which involves higher national saving and a way to get some retirement funds invested in equities. One of these approaches preserves the present benefit structure, one shifts to large-scale individual accounts, and one is a hybrid.
Citation1996. "Different Approaches for Dealing with Social Security." Journal of Economic Perspectives, 10(3): 55-66. DOI: 10.1257/jep.10.3.55
- H55 Social Security and Public Pensions