Title: Risk aspects of investment-based social security reform
Description: Our current social security system operates on a pay-as-you-go basis; benefits are paid almost entirely out of current revenues. As the ratio of retirees to taxpayers increases, concern about the high costs of providing benefits in a pay-as-you-go system has led economists to explore other options. One involves "prefunding," in which a person's withholdings are invested in financial instruments, such as stocks and bonds, the eventual returns from which would fund his or her retirement. The risks such a system would introduce--such as the volatility in the market prices of investment a.
Subjects: Social security, Securite sociale, POLITICAL SCIENCE, Congres, Public Policy, Risicoanalyse, Finance, Privatisation, Hervormingen, Pensioen, Sociale zekerheid, Finances, Privatization, Congresses, Investeringen, Privatisering
Places: United States, Etats-Unis