Policies to Improve the Resiliency of Long-Term Social Security Financing

29 Pages Posted: 25 Jul 2008

Date Written: July 2, 2008

Abstract

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

Biggs, Andrew G., Policies to Improve the Resiliency of Long-Term Social Security Financing (July 2, 2008). Available at SSRN: https://ssrn.com/abstract=1166782 or http://dx.doi.org/10.2139/ssrn.1166782

Andrew G. Biggs (Contact Author)

American Enterprise Institute ( email )

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United States
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