Policies to Improve the Resiliency of Long-Term Social Security Financing
29 Pages Posted: 25 Jul 2008
Date Written: July 2, 2008
While Social Security is projected to begin running deficits within the next decade and become insolvent during the early 2040s, a significant degree of uncertainty accompanies these projections. This uncertainty causes some to argue for delay in addressing projected deficits.
Moreover, some proposed reforms would increase uncertainty regarding future system financing. This paper examines policies to index Social Security taxes or benefits to changes in the ratio of workers to beneficiaries, allowing for auto-correction for changing demographic factors that impact system finances.
Keywords: old-age retirement benefits, uncertainty, demographics
JEL Classification: H55
Suggested Citation: Suggested Citation