Title: Structural reform of social security
First published: 2005
Description: "Governments around the world have enacted or are currently considering fundamental structural reforms of their social security pension programs.  The key feature in these reforms is a shift from a pure pay-as-you-go tax-financed system, in which taxes on current workers are primarily distributed to current retirees, to a mixed system that combines pay-as-you-go benefits with investment-based personal retirement accounts.  This paper discusses how such a mixed system could work in practice and how the transition to such a change could be achieved.  It then analyzes the economic gains that would result from shifting to a mixed system.  I turn next to the three problems that critics raise about any investment-based plan: administrative costs, risk, and income distribution.  Finally, I comment on some of the ad hoc proposals for dealing with the financial problem of social security without shifting to an investment-based system"--National Bureau of Economic Research web site.
Subjects: Social security, Finance
Places: United States
LC classification: HB1