ERIC Number: EJ759364
Record Type: Journal
Publication Date: 2006
Reference Count: N/A
The Role of Earnings and Financial Risk in Distributional Analyses of Social Security Reform Measures
Hungerford, Thomas L.
Journal of Policy Analysis and Management, v25 n2 p417-438 Spr 2006
The Social Security Trustees project that the Social Security program faces longterm financing difficulties. Several proposals that have been offered to shore-up the finances of the Social Security program would create individual retirement accounts funded with part of the payroll tax. The authors of many of these proposals claim that future beneficiaries will be better off under their new system than under the current system. This study examines the consequences of differing earnings patterns and year-to-year differences in asset returns have for Social Security retired worker benefits in three Social Security reform proposals. Incorporating both actual earnings histories and variation in asset returns shows that none of the three individual account plans can always deliver benefits that are higher than payable current-law benefits.
Descriptors: Role, Salaries, Financial Policy, Risk Management, Trend Analysis, Federal Legislation, Security (Psychology), Finance Reform, Retirement, Money Management, Comparative Analysis, Retirement Benefits
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Publication Type: Journal Articles; Reports - Research
Education Level: N/A
Authoring Institution: N/A
Identifiers - Laws, Policies, & Programs: Social Security