James Moore of the investment firm PIMCO discusses the latest Social Security Trustees Report. Some highlights:
- Over the past five years the exhaustion date of the OASI trust has been brought forward by eight years. We are heading in the wrong direction.
- What is causing the shortfall? Setting aside the actuarial p’s and q’s, the core of the problem comes down to mortality, demographics and growth.
- The most likely solution will be lower indexation of wage growth for benefit determination, delayed retirement for those set to retire in 10 or more years and higher taxes for everyone.
Check out the whole article here.