Different Approaches for Dealing with Social Security
- 1 August 1996
- journal article
- Published by American Economic Association in Journal of Economic Perspectives
- Vol. 10 (3) , 55-66
- https://doi.org/10.1257/jep.10.3.55
Abstract
This 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.Keywords
This publication has 1 reference indexed in Scilit:
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