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 assets—are the focus
of this offering from the NBER. Exploring the issues involved in
measuring risk and developing models to reflect the risks of various
investment-based systems, economists evaluate the magnitude of the
risks that both retirees and taxpayers would assume. The insights that
emerge show that the risk is actually moderate relative to the
improved return, as well as being balanced by the ability of an
investment-based system to adapt to differences in individual
preferences and conditions.
Les mer
Produktdetaljer
ISBN
9780226092560
Publisert
2018
Utgave
1. utgave
Utgiver
Vendor
University of Chicago Press
Språk
Product language
Engelsk
Format
Product format
Digital bok
Forfatter