Contingencies, a magazine for the actuarial profession published by the Academy of Actuaries, solicited input from four professional actuaries regarding how they would fix Social Security. They are: The whole article is well worth a read. Update: Here's something I think is worth pointing out: three of the four actuaries propose a universal flat Social Security benefit paid to all seniors, regardless of their prior earnings or labor force participation. This is interesting given that Social Security benefits have always been tied to work and taxes paid. The idea they're proposing is similar to so-called "universal pensions" such as those in New Zealand. These universal pensions would be supplemented with an earnings-based second level benefit. I've done some work in this area which should be forthcoming over the next month or so; there are pros and cons to universal pensions and it would constitute a big shift from Social Security's traditional approach, but they would also address some shortcomings to the current method of providing retirement income security.
Thursday, November 13, 2008
Four actuaries take on the Social Security problem
Labels:
Social Security reform
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